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MATTHEWS, N.C. — Family Dollar Stores Inc. shareholders will vote December 11 on the company’s proposed $8.5 billion merger with Dollar Tree Stores Inc.
Family Dollar Stores Inc. shareholders will vote December 11 on the company’s proposed $8.5 billion merger with Dollar Tree Stores Inc.
For the merger to move forward, a majority of Family Dollar stockholders of record as of October 30 must vote in favor of the deal, valued at $74.50 per share, which breaks down to $59.60 in cash and Dollar Tree shares valued at $14.90.
The companies aim to complete the deal by year’s end.
Family Dollar’s board of directors has unanimously endorsed the offer over a richer, all-cash bid from Dollar General Corp. worth $80 a share. Family Dollar directors assert that the Dollar General bid is unlikely to win approval from federal antitrust regulators.
Dollar General launched its hostile takeover bid directly at Family Dollar shareholders after being rebuffed by the retailer’s directors. Dollar General set an October 31 deadline for Family Dollar shareholders to tender their stock to Dollar General.
That campaign was bolstered this week by a letter from an activist investor — Elliott Advisors (UK) Ltd., an affiliate of New York-based hedge fund Elliott Associates — sent to Family Dollar’s board and Howard Levine, the company’s chairman and chief executive officer. The investor, which said it held 4.9% of Family Dollar stock, urged the board to do "everything within its power to provide Dollar General with an even playing field in its continuing efforts to acquire the company at price levels that are clearly superior."
