Dollar General Corp raised its bid for Family Dollar Stores Inc by 2 percent to $80 per share, or $9.1 billion, and warned it may turn hostile and appeal directly to shareholders if the new offer was rejected.Dollar General also said it would pay a break-up fee of $500 million if deal ran foul of competition law, the reason Family Dollar had cited for its rejection the earlier offer and opting instead for an $8.5 billion cash-and-stock bid from Dollar Tree Inc.Family Dollar's shares were up almost 1 percent at $80.50 in premarket trading, above Dollar General's cash offer, suggesting some investors held hopes of higher offers."In the event you refuse to engage with us regarding our revised proposal, we will consider taking our persuasive and superior proposal directly to your shareholders," Dollar General Chief Executive Rick Dreiling said in a letter to Family Dollar's board on Tuesday.
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 0.33% or $-0.21/share to $63.99. In the past year, the shares have traded as low as $53.00 and as high as $65.99. On average, 6748590 shares of DG exchange hands on a given day and today's volume is recorded at 3665173.
Dollar Tree, Inc. (Dollar Tree) is an operator of discount variety stores offering merchandise at the fixed price. Shares of DLTR fell by 0.6% or $-0.325/share to $53.62. In the past year, the shares have traded as low as $49.59 and as high as $60.19. On average, 2898030 shares of DLTR exchange hands on a given day and today's volume is recorded at 2670946.
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 remained unchanged at $79.83. In the past year, the shares have traded as low as $55.64 and as high as $80.20. On average, 3134540 shares of FDO exchange hands on a given day and today's volume is recorded at 609728.
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