The Board of Directors of NYSE-listed Family Dollar Stores, Inc. has recommended support of merger agreement with Dollar Tree, while unanimously rejecting the non-binding proposal made by Dollar General Corporation citing antitrust regulatory considerations.
"In negotiating the merger agreement with Dollar Tree, the Family Dollar Board, will negotiate subject to Dollar Tree providing diligence materials and even terminate the merger agreement to enter into a new agreement with, a competing bidder, who bids a superior proposal”, a statement from Family Dollar said.
The statement added, “The Family Dollar Board, after consultation with its financial and legal advisors who have conducted an extensive antitrust analysis, determined that the Dollar General proposal fails to satisfy this requirement.”
Howard Levine, CEO of Family Dollar, said, “Our Board reviewed with our advisors all aspects of Dollar General’s proposal and unanimously concluded that it is not reasonably likely to be completed on the terms proposed. Accordingly, our Board rejects Dollar General’s proposal and reaffirms its support for the pending merger with Dollar Tree.”
Mr. Levine continued, “I would also like to note that a letter sent by Dollar General, contained blatant mischaracterizations and did nothing to address the antitrust issues raised by Family Dollar.”
Glenn Eisenberg, Chair of the Committee overseeing Family Dollar’s consideration said, “The directors have been diligent in their approach to the process that led up to the merger agreement with Dollar Tree and believe the Dollar Tree transaction offers substantial and certain value to our stockholders.”
