Who needs to watch soap operas when there’s so much drama going on in the dollar store world? Love triangles, spurned advances and complicated affairs — the plot continues to thicken as Family Dollar has rejected Dollar General’s latest takeover offer of $9.1 billion, in favor of a merger with Dollar Tree. We imagine someone slapped someone else by this point.
This, despite an apparent warning from Dollar General that if its offer was refused, it would “consider taking our persuasive and superior proposal directly” to Family Dollar’s shareholders.
Family Dollar said today it had formally rejected its would-be suitor’s offer, saying it still has issues with antitrust issues and that Dollar General hadn’t done enough to convince it there wouldn’t be a problem if the deal didn’t get approved.
The company is staying true to its current steady Dollar Tree and plans to go ahead with that $8.5 billion merger deal, reports DealBook. Under that deal, Dollar Tree will sell off as many stores as needed to get the deal past regulators in a “hell or high water” provision.
“We are focused on delivering to Family Dollar shareholders the highest value with certainty, and the Dollar Tree transaction does just that,” said Edward Garden, the chief investment officer of the hedge fund Trian Fund Management and a director of Family Dollar. “Dollar General’s revised proposal, on the other hand, does not eliminate regulatory risk for Family Dollar shareholders.”
Family Dollar Rejects Revised Bid by Dollar General [DealBook]
by Mary Beth Quirk via Consumerist
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