Dollar General ups bid for Family Dollar in light of antitrust concerns
SEAFOODNEWS.COM [Progressive Grocer] By Kyle Shamorian - September 17, 2014 -
Dollar General upped its offer today to purchase Family Dollar Stores Inc., despite the Goodlettsville, Tenn.-based discounter having had its initial offer rejected.
In a letter sent to the Family Dollar board of directors, Dollar General CEO Rick Dreiling offered to purchase the company for $80 per share, up from $78.50 per Dollar General's previous bid made last month.
"Not only is Dollar General not taking no for an answer, its revised proposal goes a long way to ensuring Family Dollar shareholders won’t have a reason to say no either," said Planet Retail Research Director Kelly Tackett. "The new provisions should mitigate any lingering concerns Family Dollar’s board has voiced around the antitrust hurdles. But it’s still far from clear that the board will endorse the new bid. "
Tackett also suspects "ensuing conversations will shed some light on Dollar General allegations that Family Dollar CEO Howard Levine sidestepped previous deal discussions out of self-interest."
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