Family Dollar is rebuffing Dollar General’s takeover bid, citing antitrust issues. The discounter’s board supports its existing merger with Dollar Tree.
Family Dollar Stores Inc. Chairman and CEO Howard Levine said in a statement Thursday that its board and advisers reviewed Dollar General Corp.’s offer and determined it wasn’t reasonably likely to be completed on the terms proposed.
Dollar General declined to comment.
On Monday Dollar General – the nation’s biggest dollar-store chain – offered about $8.95 billion, or a $78.50 per share in cash, for Family Dollar. The Goodlettsville, Tennessee company said at the time that it believed it could quickly address any antitrust issues and was willing to divest up to 700 of its stores in order to get the necessary approvals.
Last month Family Dollar agreed to an $8.5 billion deal with Virginia-based Dollar Tree Inc. The transaction includes $59.60 in cash and the equivalent of $14.90 in shares of Dollar Tree for each share held. The companies valued the transaction at $74.50 per share at the time. Including debt and other costs, Family Dollar and Dollar Tree estimated the deal to be worth approximately $9.2 billion.
Dollar General operates 8 stores in Coffee County with Family Dollar and Dollar Tree both offering 2 locations.
Family Dollar Says No To Dollar General Offer
