Discount retailer Dollar General Corp is considering a rival bid to Dollar Tree Inc’s $8.5 billion offer for Family Dollar Stores Inc, Bloomberg reported, citing people with knowledge of the matter. Dollar General shares were up 3 percent at $57.62 on the New York Stock Exchange on Tuesday. Family Dollar shares were also up 2 percent at $77.26. Dollar Tree shares were down 1.8 percent at $54.99 on the Nasdaq. Goodlettsville, TN-based Dollar General was working with an adviser to evaluate options, knowing banks are willing to finance a counter-bid, Bloomberg said, quoting one of the sources. There was no guarantee that the company would make an offer, the report said. One of the sources put the chance of a rival Dollar General bid at 50 percent. The company will lose its position as North America’s largest discount retailer if Dollar Tree buys Family Dollar.
Dollar General operates 8 stores in Coffee County with Family Dollar offering 2 locations and Dollar Tree also has 2 stores.
Will Dollar General or Dollar Tree Buy Out Family Dollar?
