Boston, MA 08/21/2014 (wallstreetpr) – Dollar General Corp. (NYSE:DG) in a letter to Family Dollar Stores, Inc. (NYSE:FDO) has questioned whether the company’s CEO, Howard Levine, is willing to ensure Shareholder’s interests supersedehis own interests as bids continue to be tabled. The remarks come as Dollar General continues to feel it is being sidelined despite tabling a $9 billion takeover bid awaiting response. In a recent filing to the Securities and Exchange Commission, Dollar General claims it was not mentioned despite expressing its clear intention to complete the transaction.
Dollar Generations Concerns
Dollar General Corp. (NYSE:DG) claims that it held a meeting with a rival discount Chain in June and expressed its desire to make an acquisition days before Dollar Tree, Inc. (NASDAQ:DLTR) entered into an exclusive discussion over the same. Dollar General seems to be angered by the fact that it was not given any indication that a deal with another rival was imminent in order to enter negotiations earlier.
Dollar General Corp. (NYSE:DG) was forced to bid higher than the $8.5 billion offered by Dollar Tree as one of the ways of staying in front of the pack. Dollar General claims that prior to tabling a bid for Family Dollar CEO, Levine never gave any indication that they had received a bid from Dollar tree. Dollar general claims that Levine is mainly driven by his personal interest as he seeks to remain boss even after a potential acquisition.
Carl Icahn Claims
The allegations made by Dollar General are a serious accusation in corporate America that may plummet the CEO into trouble with authorities. CEO’s are always required to ensure maximum. Shareholders value especially in matters pertaining to acquisitions and sales. Investor Carl Icahn had also questioned the motive behind Family Dollar agreeing to a $305 million breakup fee with Dollar Tree even before finding out whether Dollar General Corp. (NYSE:DG) was interested’ in tabling a bid.
Carl Icahn had gone to the extent of questioning whether Family Dollar was pushing for a deal with Dollar tree as one of the ways of safeguarding Levine’s future under the merger.