Home / Knowledge / News / Apparel/Garments / Dollar General hikes acquisition bid for Family Dollar
Dollar General hikes acquisition bid for Family Dollar
03
Sep '14
Following a rejection of its earlier proposal, NYSE listed Dollar General Corporation has sent an enhanced acquisition proposal for Family Dollar Stores.

Dollar General said it would increase its all-cash proposal for all outstanding shares of Family Dollar to $80.00 per share, up $1.50 per share from its first proposal.

Dollar General also indicated that it will also increase the number of stores to divest to 1,500 if ordered by the Federal Trade Commission, which it said is an indicator of its confidence to obtain antitrust approval.

In case Dollar General is not able to obtain antitrust approval, the retailer has agreed to pay a $500 million reverse break-up fee to Family Dollar relating to antitrust matters.

Dollar General said the revised proposal provides Family Dollar's shareholders with approximately $640 million of additional aggregate value over Dollar Tree's offer.

This, the retailer added, represents a premium of 31.9 percent over the closing price of $60.66 for Family Dollar stock on the day prior to the Dollar Tree announcement.

On July 28, Dollar Tree bid for Family Dollar in a cash and stock transaction at a consideration of $74.50 per share, a 22.8% premium over Family Dollar’s closing price as of July 25, 2014.

However on August 18, rival Dollar General said it will pay $78.50 per share in cash in a transaction valued at $9.7 billion to Family Dollar shareholders, substantially up from $74.50 per share cash / stock offered by Dollar Tree.

The BoD of Family Dollar Stores, however recommended support of merger agreement with Dollar Tree, while rejecting the non-binding proposal made by Dollar General citing antitrust regulatory considerations on August 25.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Jun 2016

China’s central bank weakens yuan to 5-year low

The People’s Bank of China (PBoC), the country’s central bank, has...

Textiles | On 27th Jun 2016

Brexit may not impact textile machinery industry: ITME

The recent decision of the United Kingdom to pull out of the...

Textiles | On 27th Jun 2016

USDA announces cotton ginning cost-share programme

The US department of agriculture (USDA) has recently announced the...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
june 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search