Activist investor drops Dollar Tree challenge
A planned proxy fight at Dollar Tree has been called off.
Activist investor Starboard announced that it has withdrawn its slate of nominees for election to Dollar Tree’s board, saying that it is pleased with the discount retailer’s decision to test multiple price points at its stores.
“In addition, management appears to have conviction that its proposed turnaround plan at Family Dollar is finally gaining traction as evidenced by greater than 10% comparable store sales at remodeled stores,” Starboard stated. “We continue to enjoy constructive conversations with management and recognize their progress, as well as the significant increase in shareholder value based on the promises made since our involvement. As such, Starboard has decided to withdraw its nomination of director candidates for election at the 2019 annual meeting.”
Starboard added that it sees “substantial opportunity for further value creation” and looks forward to a “continued dialogue and monitoring of the company's progress … continued improvement in the operating performance of Family Dollar."
The hedge fund in January called on Dollar Tree to explore ways to “unlock value,” including selling its ailing Family Dollar business. It also planned to seek majority control of the Dollar Tree’s 12-person board, with plans to nominate seven directors at Dollar Tree’s next shareholder meeting.
In a statement, Dollar Tree noted Starboard’s decision and said it was committed to its strategy to improve Family Dollar’s performance.
“We welcome Starboard’s announcement and appreciate the constructive engagement and dialogue we continue to have with them and our other shareholders,” the retailer stated. “Dollar Tree’s Board and management team are committed to pursuing our announced plan to improve Family Dollar performance and to testing other ways to help deliver sustainable value-creation for shareholders while providing the best possible experience and value for our customers.”
Activist investor Starboard announced that it has withdrawn its slate of nominees for election to Dollar Tree’s board, saying that it is pleased with the discount retailer’s decision to test multiple price points at its stores.
“In addition, management appears to have conviction that its proposed turnaround plan at Family Dollar is finally gaining traction as evidenced by greater than 10% comparable store sales at remodeled stores,” Starboard stated. “We continue to enjoy constructive conversations with management and recognize their progress, as well as the significant increase in shareholder value based on the promises made since our involvement. As such, Starboard has decided to withdraw its nomination of director candidates for election at the 2019 annual meeting.”
Starboard added that it sees “substantial opportunity for further value creation” and looks forward to a “continued dialogue and monitoring of the company's progress … continued improvement in the operating performance of Family Dollar."
The hedge fund in January called on Dollar Tree to explore ways to “unlock value,” including selling its ailing Family Dollar business. It also planned to seek majority control of the Dollar Tree’s 12-person board, with plans to nominate seven directors at Dollar Tree’s next shareholder meeting.
In a statement, Dollar Tree noted Starboard’s decision and said it was committed to its strategy to improve Family Dollar’s performance.
“We welcome Starboard’s announcement and appreciate the constructive engagement and dialogue we continue to have with them and our other shareholders,” the retailer stated. “Dollar Tree’s Board and management team are committed to pursuing our announced plan to improve Family Dollar performance and to testing other ways to help deliver sustainable value-creation for shareholders while providing the best possible experience and value for our customers.”