Family Dollar Stores, Inc. announced that its Board of Directors has adopted a one-year shareholder rights plan, details of which will be contained in a Form 8-K to be filed with the U.S. Securities and Exchange Commission. All of the Company’s directors voted in favor of the adoption of the rights plan, other than Edward Garden who voted against the plan.
The rights plan, which has a 10% beneficial ownership threshold and may be amended, redeemed or terminated by the Board at any time prior to being triggered, will help the Board protect shareholders against any person or group gaining control of the Company by open market accumulation or otherwise without paying a control premium for all shares.
The plan applies equally to all current and future stockholders and is not designed to prevent an offer to acquire the Company, but rather to allow the Board adequate time to consider any and all alternatives. The rights plan will not have any impact on the Company’s financial reporting or the manner in which the Company’s common stock trades.
Morgan Stanley & Co. Incorporated is acting as financial advisor to Family Dollar and Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel.
About Family Dollar
For more than 54 years, Family Dollar has been providing value and convenience to customers in easy-to-shop neighborhood locations. Family Dollar’s mix of name brands and quality, private brand merchandise appeals to shoppers in more than 8,100 stores in rural and urban settings across 46 states. Helping families save on the items they need with everyday low prices creates a strong bond with customers, who often refer to their neighborhood store as “my Family Dollar.”