Family Dollar Stores Inc rejected a $9 billion takeover offer from Dollar General Corp that it said could run foul of competition law, opting instead for a smaller bid from Dollar Tree Inc that guarantees a job for its CEO.Family Dollar, the second-largest dollar store in the United States, said it believed a deal with its larger rival would be unlikely to win antitrust approval, despite a promise by Dollar General to close up to 700 stores."We will not jeopardize the Dollar Tree deal for a transaction with Dollar General that has a high likelihood of not closing due to antitrust considerations," said Ed Garden, an independent director on Family Dollar's board and co-founder of Trian Fund Management LP, a large shareholder.Trian Fund Management, led by activist investor Nelson Peltz, owned 7.3 percent stake in Family Dollar as of July 27.
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 fell by 0.02% or $-0.01/share to $63.75. 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 4095368.
Dollar Tree, Inc. (Dollar Tree) is an operator of discount variety stores offering merchandise at the fixed price. Shares of DLTR fell by 1.31% or $-0.72/share to $54.28. 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 3742037.
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 0.19% or $-0.15/share to $79.66. 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 2469278.
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