Family Dollar delays vote on Dollar Tree bid

Family Dollar delayed a shareholder vote on a potential acquisition by Dollar Tree until Jan. 22 in a move that allows more time to contemplate a rival bid from Dollar General.

Family Dollar convened as planned on Tuesday and, based on insufficient votes, subsequently adjourned its Special Meeting of Stockholders on the proposed transaction with Dollar Tree.

According to Sterne Agee analyst Chuck Grom, Dollar General “saw this postponement coming ... postponing the vote will give Dollar General time to further its discussions with the FTC.”All told, Grom asserted, this development is positive for Dollar General.

Family Dollar agreed this summer to be acquired by competing retailer Dollar Tree Inc. for $8.5 billion, rejecting a $9.1 billion offer from Dollar General, saying the businesses are too similar and they would face antitrust concerns. But a Delaware judge said Dec. 19 that shareholders could vote on the Dollar Tree deal. Still, Dollar General Corp. extended its offer on Dec. 22 to acquire the company for $80 per share until Jan. 30. The offer was previously set to expire on Dec. 31.