Tuesday, 28 July 2015
Last updated 11 hours ago
Jun 9 2014 | 11:23am ET
Carl Icahn has taken another big stake in a target company—and that target company has moved to ensure it gets no bigger.
Icahn announced that his firm has taken a 9.4% stake in Family Dollar Stores, with plans to urge the company to consider strategic options, he said in a Friday regulatory filing. Icahn joins two major hedge funds with big interests in Family Dollar: fellow activist Trian Fund Management, which owns 7.4%, and Paulson & Co., which owns a 5.7% stake.
Family Dollar said Friday that it is “open to dialogue with all shareholders and welcomes input toward the shared goal of enhancing value.” But the company quickly adopted a one-year poison pill limiting investors to a 10% stake.
The company said the poison pill was designed to give it “adequate time to consider any and all alternatives.”
Trian sought to buy Family Dollar three years ago, which resulted in a standstill agreement that expired last year.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…