Dollar General Isn’t Giving Up on Family Dollar Bid
GOODLETTSVILLE, Tenn. — Dollar General Corp. is taking its $9.1-billion bid for Family Dollar Stores directly to the company's shareholders. The hostile takeover attempt comes in the wake of Family Dollar twice rejecting Dollar General's attempt to buy the Charlotte, N.C.-based discount chain.
Dollar General reaffirmed that its offer of $80 per share is superior to that of the $74.50-per-share deal Family Dollar has inked with competitor Dollar Tree. Dollar General noted that its offer would provide Family Dollar shareholders with an additional value of $640 million.
Similar to its prior offer on Sept. 2, Dollar General also is willing to divest up to 1,500 stores and pay Family Dollar a $500-million reverse breakup fee.
Family Dollar has maintained that its deal with Dollar Tree presents fewer antitrust issues per the Federal Trade Commission (FTC) and rejected the two bids by Dollar General on these grounds.
“Our offer provides Family Dollar shareholders with significantly greater value than the existing agreement with Dollar Tree, as well as immediate and certain liquidity for their shares,” said Dollar General Chairman and CEO Rick Dreiling. “By taking this step, we are providing all Family Dollar shareholders a voice in this process, and we urge them to tender into our offer.”
Dreiling added that Dollar General can now "begin the antitrust review process and will have an opportunity to present our position directly to the FTC."