US: Dollar General raises Family Dollar takeover bid
Dollar General has raised its offer for Family Dollar to $80.00 per share
US retailer Dollar General Corporation has raised its takeover offer for rival Family Dollar less than two weeks after its previous bid was rejected.
Under the terms of the revised proposal, Dollar General would increase its all-cash proposal for Family Dollar from US$78.50 per share to $80.00. Family Dollar had rejected the earlier offer on the basis of antitrust regulatory considerations.
It has also offered to divest up to 1,500 stores if required by the Federal Trade Commission (FTC) - up from its earlier proposal of 700. Dollar General has also agreed to pay a $500m reverse break-up fee to Family Dollar in the event that the transaction is not completed for antitrust reasons.
"We are confident that our enhanced proposal sufficiently addresses any concerns that led Family Dollar's board of directors to reject our prior proposal without any discussions between our companies," said chairman and CEO Rick Dreiling.
The company's revised proposal, he added, provides Family Dollar shareholders with "significantly increased value" over the existing $74.50 per share agreement with Dollar Tree.
"If the Family Dollar board fails to seize this opportunity to maximise value for its shareholders, we will consider taking our superior proposal directly to the Family Dollar shareholders," Dreiling noted.
Dollar Tree has completed its acquisition of Family Dollar Stores, in a deal that will extend its reach to low-income customers, and strengthen and diversify its footprint....
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