Family Dollar’s board of directors told shareholders Wednesday not to sell their stock to rival Dollar General, which is trying to buy the discount retailer in a $9.1 billion hostile bid. While Dollar Tree has offered less money — $74.50 per share in cash and stock, for a total of $8.5 billion —Family Dollar’s board has said the company’s offer is more likely to be approved by federal regulators. More than 6,000 of Family Dollar’s 8,200 stores are within a three mile radius of a Dollar General store, the company said, and the two companies have “nearly identical store formats and product mixes.” “The FTC is likely to take the position that Family Dollar’s pricing model would immediately lead to higher prices in thousands of locations if Dollar General was no longer an independent competitor,” Family Dollar said. If Dollar General’s offer were rejected due to antitrust concerns, the company has offered to pay Family Dollar shareholders a $500 million fee. #SF #News #49ers
Posted on: Thu, 18 Sep 2014 00:46:05 +0000