Boston, MA 09/10/2014 (wallstreetpr) – Dollar General Corp. (NYSE:DG) is geared up make an aggressive bid of as much as $9.2 billion to acquire competitor Family Dollar Stores, Inc, (NYSE:FDO), as early as this week.
According to The New York Times article, Dollar General could announce the offer today, further complicating Family Dollar’s earlier decision. The company had agreed to go ahead with Dollar Tree, Inc. (NASDAQ:DLTR) in a deal fixed at $8.5 billion.
Dollar General had proposed to buy Family Dollar Stores, Inc, (NYSE:FDO) at the price of $80 per share the previous week. But he latter had refused to consider the offer and had decided to continue its deal with Dollar Tree. The company claimed that the Dollar Tree deal offered it a better chance to rally with antitrust regulators.
Reports of Dollar General Corp. (NYSE:DG)’s intentions were first published by Reuters. The intended move by Dollar General is anticipated to, if not sway Family Dollar’s decision delay the merger agreement between the two agreed parties. In addition, it could also lead Family Dollar’s shareholders to disagree with the company’s previous decision. This could potentially lead a merger between Dollar General and Family Dollar.
Dollar General Corp. (NYSE:DG), which had been seeking to acquire Family Tree for a long time, complained that it was not allowed a fair chance to bid for the company. The company indicated that it restrained from indulging in discussions previously partly on the pretext of the concerns that arose regarding Family Dollar’s Chief Executive’s job.
Family Dollar Stores, Inc, (NYSE:FDO)’s Board however has put forward its preference quite clearly amidst the entire series of events. It even went far ahead so as to discuss a “hell or high water” clause, confirming to take necessary actions to close the deal and obtaining clearance from regulators. Dollar General, on the other side, is willing to sell off as many as 1,500 stores to gain antitrust approval.