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GOODLETTSVILLE, Tenn. — Dollar General Corp. reiterated on Thursday its commitment to acquire Family Dollar Stores Inc., thereby reminding Family Dollar’s shareholders that there’s a richer offer on the table than the one favored by Family Dollar’s board of directors.
Dollar General Corp. reiterated on Thursday its commitment to acquire Family Dollar Stores Inc., thereby reminding Family Dollar’s shareholders that there’s a richer offer on the table than the one favored by Family Dollar’s board of directors.
On Wednesday the board had unanimously urged shareholders to ignore the hostile takeover attempt by Dollar General, and it reiterated its support for a buyout bid from Dollar Tree Stores Inc.
That bid of $74.50 a share for Family Dollar is less rich than the $80 per share that Dollar General is offering. In urging shareholders to take the lower offer, Family Dollar directors insist that the Dollar Tree offer is superior because there is a stronger likelihood that it would pass muster with regulators at the Federal Trade Commission.
Rick Dreiling, Dollar General’s chairman and chief executive officer, is expressing his frustration with the Family Dollar board for its failure to sit down to discuss his company’s offer.
"Dollar General has invested significant time and resources in pursuit of this acquisition and remains committed to its successful completion. Family Dollar continues to make statements that are not worthy of debate. Rather than engaging with us in a meaningful and constructive manner, the Family Dollar board has continued its efforts to distract shareholders from the main issue at hand — that a superior proposal adequately addressing antitrust issues remains on the table. Through our tender offer, Dollar General has provided all Family Dollar shareholders a voice in this process, and we urge them to tender into our offer," Dreiling says.
