Icahn Seeks Alternatives For Family Dollar With Nearly 10% Stake

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.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...