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Family Dollar has recommended its shareholders reject the most recent offer by Dollar General Corp. and not tender their shares.
Characterizing the bid as "illusory," Family Dollar Chairman and CEO Howard R. Levine reiterated to stockholders that the offer would not be able to close on the proposed terms due to antitrust regulations.
The $9.1 billion bid at $80 per share offered to stockholders on Sept. 10 was identical to that of the bid made to the Family Dollar board of directors on Sept. 2, which the Charlotte-based discounter also rebuffed.
Family Dollar once again reaffirmed its deal with Dollar Tree at $8.5 billion for $74.50 per share, which, according to Levine, "delivers attractive value in the form of immediate upfront cash and upside participation in a combined Dollar Tree-Family Dollar entity, as well as closing certainty.”
“We are focused on delivering to Family Dollar shareholders the highest value with certainty, and the Dollar Tree transaction does just that," added Ed Garden, a Family Dollar director and co-founder and chief investment officer at Trian Fund Management, L.P., a large shareholder of the company.
"Dollar Tree has taken the antitrust risk off the table by committing to divest as many stores as necessary to obtain antitrust clearance. We remain fully committed to the Dollar Tree transaction," Garden added.