Dollar General weighs bid for Family Dollar
Dollar General Corp. is considering a bid for Matthews-based Family Dollar Stores Inc., according to a Bloomberg report.
Chesapeake, Va.-based Dollar Tree announced July 28 it would pay $8.5 billion − $74.50 a share − for the discount retailer. Family Dollar's stock has been trading at or above that price since the announcement.
Goodlettsville, Tenn.-based Dollar General is currently the No. 1 dollar-store chain by number of stores. A combined Family Dollar and Dollar Tree would overtake the top spot.
Investor Carl Icahn, who took a 9.4% stake in Family Dollar in June (Under Fire, July 2014), aggressively pushed for a sale of the company, then dumped more than half of his shares after the Dollar Tree deal was announced.