Dollar General Corp.

Since Family Dollar’s board of directors unanimously rejected Dollar General’s second and sweetened tender offer from Sept. 2, Dollar General has decided to make the tender offer directly to the company’s shareholders.

The company’s all-cash offer of $80 per share beats Dollar Tree’s offer of $74.50 per share cash/stock offer originally made July 28. The Family Dollar board has rejected both Dollar General’s offers on the basis of antitrust regulatory considerations.

Goodlettsville, Tenn. – Dollar General Corp. is upping the ante in its $9.1 billion bid to purchase Family Dollar Inc. by making a hostile takeover offer to Family Dollar stockholders of $80 per share. This offer beats the $74.50 per share, $8.5 billion offer Family Dollar has accepted from Dollar Tree Inc, and is a 32% premium over the closing price of $60.66 for Family Dollar stock on Sept. 9.
 

Chesapeake, Va. -- Dollar Tree Inc. and Family Dollar Stores Inc. announced, as expected, they have received a second request for information from the U.S. Federal Trade Commission in connection with Dollar Tree's pending $8.5 billion deal to acquire Family Dollar.

Dollar Tree and Family Dollar have amended their merger agreement to include a commitment by Dollar Tree to divest as many stores as necessary or advisable to obtain antitrust clearance for the previously announced cash and stock transaction.

All other terms and conditions of the merger agreement remain the same as announced on July 28, 2014. The two companies also said that their expectations for a closing date for the transaction have accelerated to as early as the end of November 2014.

Matthews, N.C. — Family Dollar Stores on Friday rejected the sweetened, $9.1 billion take-over bid made by Dollar General on Sept.

Family Dollar has rejected the revised proposal made by Dollar General on Sept. 2 on the basis of antitrust regulatory considerations. The Dollar General offer may be financially superior, the dollar store operator noted, but it's not likely to pass muster with the Federal Trade Commission.
 

The Family Dollar board is under new pressure to walk away from a deal with Dollar Tree after Dollar General further increased an already more generous counter offer.

Early Monday Dollar General increased its all cash offer to $80 a share from $78.50 a share and increased the number of stores it said it would be willing to divest to 1,500 from 700. The company also said it would be willing to pay Family Dollar a $500 million reverse break-up if the deal failed to secure antitrust clearance.

Goodlettsville, Tenn. -- The battle for Family Dollar moved into higher gear on Tuesday with Dollar General raising its bid for Family Dollar to $9.1 billion, or $80 per share, up from $78.50 per share in its previous offer. Dollar General also warned that it would attempt a hostile bid if Family Dollar refused to enter into talks regarding the new offer.