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Thursday, June 19, 2014

Icahn threatens proxy war if Family Dollar not put up for sale, (NYSE: FDO)

Activist investor Carl Icahn asked struggling retailer Family Dollar Stores Inc to put itself up for sale immediately, threatening a proxy war to replace the company's entire board if a sale process was not started.Icahn, who became Family Dollar's largest shareholder earlier this month, also asked that three of his representatives be added to the company's board immediately and be part of a new committee tasked with finding a buyer."Although we appreciated the cordial nature of our discussion at last night's dinner, it was apparent that we have a strong difference of opinion as to the future of our company," the billionaire said in a letter to Family Dollar's Chief Executive Howard Levine. ( Dollar's shares rose about 3 percent to $70 in extended trading, after closing at $68.14 on Thursday, valuing the company at about $7.77 billion.

Family Dollar Stores, Inc. (Family Dollar) operates a chain of more than 7,900 general merchandise retail discount stores in 46 states, providing consumers with a selection of merchandise in neighborhood stores. Shares of FDO fell by 0.12% or $-0.08/share to $68.14. In the past year, the shares have traded as low as $55.64 and as high as $75.29. On average, 1860590 shares of FDO exchange hands on a given day and today's volume is recorded at 641658.