Dollar General extends tender offer by three weeks for Family Dollar

Goodlettsville, Tenn. - Dollar General Corporation has extended its tender offer to acquire all outstanding shares of Family Dollar Stores Inc. for $80 per share, or about $9.1 billion, to Oct. 31. The offer was previously set to expire on Oct. 8. All other terms and conditions of the tender offer remain unchanged.



The step, which is largely procedural step, came as Family Dollar remained committed to its previously- agreed-upon deal with Dollar Tree for $74.50 a share.



Dollar General also said that nearly 127,000 shares of Family Dollar stock had been validly tendered into the offer, and not withdrawn, as of 5 p.m. Tuesday. As of July 5, Family Dollar had 113.95 million shares outstanding.



In September, Family Dollar reaffirmed its support of its $8.5 billion deal with Dollar Tree. Family Dollar also urged shareholders not to tender their shares to the competing chain. Family Dollar has steadfastly backed this lower bid, saying regulators are less likely to interfere over antitrust concerns.



Dollar General also revealed that only 126,499 shares have been tendered so far in response to the $80 per share offer, or about one tenth of 1%, according to the New York Times. That is to be expected at this early stage of a tender offer, but nonetheless serves as a reminder of just how far Dollar General has to go to win over Family Dollar shareholders.