Dollar General Corp stuck to its estimate of divesting 1,500 stores to win approval for its bid to purchase Family Dollar Corp, a move that analysts said could end up handing the company to Dollar Tree Inc.Dollar General's statement comes a day after two influential proxy advisory firms changed their stance, advising Family Dollar's shareholders to vote for a deal with Dollar Tree as it offered more certainty of closure.The firms cited Dollar General's failure to commit to a "hell or high water" clause or divesting more stores for their changed recommendation.Dollar Tree offered to buy Family Dollar for $8.5 billion in cash and stock and divest as many stores as needed to clear antitrust hurdles. Dollar General bid $9.1 billion in cash but has not shown willingness to shed more than 1,500 stores.
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 2.73% or $-1.85/share to $65.80. In the past year, the shares have traded as low as $53.00 and as high as $71.78. On average, 4236560 shares of DG exchange hands on a given day and today's volume is recorded at 6192270.
Dollar Tree, Inc. (Dollar Tree) is an operator of discount variety stores offering merchandise at the fixed price. Shares of DLTR fell by 1.41% or $-0.95/share to $66.42. In the past year, the shares have traded as low as $49.59 and as high as $71.53. On average, 2307470 shares of DLTR exchange hands on a given day and today's volume is recorded at 5228208.
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