Dollar General Corp said it had expressed an interest in merging with Family Dollar Stores Inc as early as June this year, but did not go ahead with an offer at that time as Family Dollar chief executive gave no indication that the company was in talks with Dollar Tree Inc . Dollar General's representatives had expressed an interest for a deal during a meeting with Family Dollar CEO Howard Levine on June 19, but he did not mention anything about an imminent sale, the company said in a letter to the Family Dollar board."At no time during this meeting did Mr. Levine indicate that there was a process, that there was any urgency to act or that there were discussions with another potential buyer," Rick Dreiling, chief executive of Dollar General, said in the letter."Had we left the meeting with the belief that a sale of Family Dollar was imminent, we assure you that our course of action would have been different."As a result, Dollar General said it is now forced to factor a $305 million break-up fee into its offer.
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 0.27% or $0.17/share to $63.76. In the past year, the shares have traded as low as $53.00 and as high as $65.99. On average, 6805540 shares of DG exchange hands on a given day and today's volume is recorded at 5831334.
Dollar Tree, Inc. (Dollar Tree) is an operator of discount variety stores offering merchandise at the fixed price. Shares of DLTR traded higher by 0.53% or $0.29/share to $55.00. In the past year, the shares have traded as low as $49.59 and as high as $60.19. On average, 2892680 shares of DLTR exchange hands on a given day and today's volume is recorded at 3502013.
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 0.14% or $0.11/share to $79.81. In the past year, the shares have traded as low as $55.64 and as high as $80.10. On average, 3106650 shares of FDO exchange hands on a given day and today's volume is recorded at 2130036.
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