Dollar General Beats Prior Offer for Family Dollar

Aug. 18, 2014
All cash proposal appears better than Dollar Tree's offer.

Family Dollar Stores Inc., which announced a merger with Dollar Tree Inc. on July 28, confirmed today it received a non-binding, unsolicited proposal from Dollar General that appears to beat the earlier deal with Dollar Tree.

Dollar General offers to acquire all of the outstanding common shares of Family Dollar for $78.50 per share in cash, contingent on due diligence and regulatory approval. Dollar Tree's offer was a cash and stock transaction. Under its terms, Family Dollar shareholders would receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares for each common share of Family Dollar owned, subject to a collar.

At closing, Family Dollar shareholders would own between 12.7 and 15.1 percent of the outstanding common stock of Dollar Tree.

While noting it remains subject to the merger agreement with Dollar Tree, Family Dollar’s board of directors said it will review and consider the Dollar General proposal.

Dollar stores in general have become major retailers of food products.

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