Navigate this market better. Subscribe for FREE stock alerts and information.

Friday, September 5, 2014

Family Dollar spurns Dollar General again, (NYSE: DG), (NYSE: FDO)

Family Dollar Stores Inc rejected Dollar General Corp's sweetened takeover bid, saying the offer still did not address antitrust concerns, raising the prospect that the No. 1 U.S. deep discount chain will go "hostile" with its offer.Dollar General raised its offer for Family Dollar Stores on Tuesday by 2 percent to $9.1 billion, or $80 per share, and said it was willing to sell up to 1,500 stores to clear any antitrust review.Dollar General also offered to pay $500 million as break-up fee and warned it may take the offer directly to Family Dollar's shareholders if it was spurned again."There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process," Family Dollar Chief Executive Howard Levine said in a statement on Friday.

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 2.45% or $-1.58/share to $62.90. In the past year, the shares have traded as low as $53.00 and as high as $65.99. On average, 6604130 shares of DG exchange hands on a given day and today's volume is recorded at 10278480.

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 1.02% or $-0.82/share to $79.24. In the past year, the shares have traded as low as $55.64 and as high as $80.97. On average, 3150580 shares of FDO exchange hands on a given day and today's volume is recorded at 5415203.



Source