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Dollar General Not Giving Up on Family Dollar Acquisition

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By Paul Ausick Updated Published
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Dollar General Inc.
The announcement earlier Friday morning that Family Dollar Stores Inc. (NYSE: FDO) had rejected Dollar General Corp.’s (NYSE: DG) latest offer does not appear to have quelled Dollar General’s ardor at all.

In a terse press release just after the lunch hour, Dollar General said:

In response to the decision by the Board of Directors of Family Dollar Stores, Inc. (FDO) to reject Dollar General’s enhanced all-cash proposal to acquire all outstanding shares of Family Dollar for $80.00 per share, Dollar General Corporation (DG) today stated that it remains committed to acquiring Family Dollar and is currently evaluating its next steps.

Except for a shout-out to its financial adviser and its lawyers, that was all Dollar General had to say. The good news for Family Dollar is that it gave the shares a bit of a bump from the intra-day low of $78.75 to around $79.00.

Dollar General has promised (threatened?) to take its latest offer directly to shareholders if Family Dollar rejected it. We shall see how that works out. The company’s chairman/CEO (and son of the company’s founder) and Nelson Peltz’s Trian Fund Management together own about 16% of Family Dollar’s stock.

ALSO READ: 10 Brands That Will Disappear in 2015

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About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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