Dollar General raises bid for Family Dollar to $9.1 billion; willing to close more stores

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.



"In the event you refuse to engage with us regarding our revised proposal, we will consider taking our persuasive and superior proposal directly to your shareholders," Dollar General CEO Rick Dreiling said in a letter to Family Dollar's board on Tuesday.



Dollar General also addressed possible antitrust concerns regarding the proposed acquisition by saying it was willing to divest up to 1,500 stores — or double the 700 locations it originally proposed — in a move to designed to satisfy antitrust regulators.



“We are confident that our enhanced proposal sufficiently addresses any concerns that led Family Dollar’s board of directors to reject our prior proposal without any discussions between our companies,” Dreiling stated.



Family Dollar had rejected the earlier bid from Dollar General in favor of a lower offer of $8.5 billion from Dollar Tree, saying that regulators were less likely to stand in the way.



Family Dollar said it has received Dollar General's latest bid and will review it.



“Family Dollar’s board of directors, in consultation with its legal and financial advisers, will review and consider the revised proposal,” the company said in a statement.