Family Dollar delays vote on Dollar Tree; good news for Dollar General
New York City - In not-unexpected news, Family Dollar has delayed its shareholder vote on a potential acquisition by Dollar Tree; the vote is now slated for Jan. 22, and analysts say this could bode well for a potential deal with industry giant 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, asserted Grom, 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.
A Delaware judge said Friday, however, that shareholders could vote on the Dollar Tree deal. Still, Dollar General Corp. on Tuesday extended its offer to acquire the company for $80 per share until Jan. 30. The offer was previously set to expire on Dec. 31.