Wednesday, August 27, 2014

Family Dollar rejects Dollar General's higher offer, to pursue deal with Dollar Tree

Last week I blogged about Dollar Tree's $8.5 billion deal for Family Dollar Stores, which was followed by Dollar General's $9.2 billion cash offer for the same company. A few days ago Family Dollar rejected the higher offer and said it will pursue its prior agreement with Dollar Tree, citing antitrust considerations.

Dollar General said it would be willing to divest up to 700 stores to make the merger with Family Dollar feasible, but Dollar General said it "will not jeopordize the Dollar Tree deal for a transaction with Dollar General that has a high likelihood of not closing due to antitrust considerations."

According to experts and analysts, the saga isn't over, as they believe Dollar General may have expected the negative response and may even be preparing to increase their offer, an offer that could top $10 billion.

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