Dollar General Corp offered to purchase Family Dollar Stores Inc for $8.95 billion, trumping Dollar Tree Inc's $8.5 billion bid, to strengthen its position as the No. 1 discount retailer in a highly-competitive U.S. market.Family Dollar's shares rose 4.5 percent to $79.52 in early trading, above the offer price of $78.50 per share in cash.Dollar General's shares were up 10.3 percent at $63.40, while Dollar Tree's shares were down 2 percent at $54.48.Analysts said a bidding war was in the offing and Dollar General was likely to win.
Dollar General Corporation is a discount retailer in the United States by number of stores, with 9,961 stores located in 39 states as of March 2, 2012, primarily in the southern, southwestern, midwestern and eastern United States. Shares of DG traded higher by 10.29% or $5.91/share to $63.37. In the past year, the shares have traded as low as $53.00 and as high as $65.99. On average, 6128120 shares of DG exchange hands on a given day and today's volume is recorded at 19570648.
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 traded higher by 4.79% or $3.64/share to $79.70. In the past year, the shares have traded as low as $55.64 and as high as $79.93. On average, 2732250 shares of FDO exchange hands on a given day and today's volume is recorded at 7948499.
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