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Things heat up between Family Dollar and Carl Icahn
Just two weeks after Family Dollar adopted a “poison pill” shareholder’s rights plan, billionaire investor Carl Icahn, who recently disclosed he has a 9.4% stake in the discount retailer, has fired back.
In an open letter to Family Dollar chairman Howard Levine, Icahn demanded that the company be put up for sale immediately. Icahn also said in the letter that he wants three of his representatives added to the Family Dollar board immediately and will take his proposal for a sale directly to shareholders if management doesn’t support it.
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Retailer bankruptcies: what suppliers need to know
The U.S. economy has undergone significant financial and social upheaval over the past five years, with companies seemingly invincible to the vagaries of the financial markets disappearing overnight. Many companies have been forced to contract by closing unprofitable stores, laying off employees, reducing spending, deferring research and development, or have been acquired by more profitable companies. With few exceptions, those companies that have survived have done so by cutting costs to the bone.