Dollar General Corp's sweetened $9.1 billion proposal to purchase Family Dollar Stores Inc may fall short of allaying its smaller rival's fears U.S. antitrust regulators will block the deal, according to two sources familiar with the matter.Family Dollar already has a deal to sell itself to rival discount retailer Dollar Tree Inc for $8.5 billion. Dollar General, the largest U.S. dollar store, first appeared as an interloper last month with a $8.95 billion competing bid, or $78.50 per share, but Family Dollar rejected the offer saying it could run afoul of competition laws.Earlier this week, Dollar General returned with a new proposal, offering $80 per share and saying it would pay a $500 million reverse break-up fee to Family Dollar if regulators scuttle the proposed deal. Dollar General also said it would be willing to divest up to 1,500 stores, an increase from the 700 it originally proposed last month.But the sources familiar with the matter said the two key remedies offered by Dollar General - the break-up fee and offer to sell more stores - failed to compensate the company for regulatory risk and may not work.
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 remained unchanged at $64.48. 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 5648082.
Dollar Tree, Inc. (Dollar Tree) is an operator of discount variety stores offering merchandise at the fixed price. Shares of DLTR traded higher by 0.08% or $0.045/share to $55.02. In the past year, the shares have traded as low as $49.59 and as high as $60.19. On average, 2998940 shares of DLTR exchange hands on a given day and today's volume is recorded at 3109452.
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 0.21% or $-0.17/share to $80.06. 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 1487880.
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