Friday, 1 August 2014
Last updated 4 hours ago
Jul 11 2014 | 7:19am ET
Carl Icahn is turning up the heat on discount retailer Family Dollar after the company announced that its profit dropped by one-third in the second quarter.
The activist billionaire recently took a 9.4% stake in the company and urged it to put itself up for sale. Icahn also demanded three seats on its board, threatening a proxy contest if it does not concede.
Yesterday, Icahn reiterated his demands—and his trenchant criticism of Family Dollar’s executives.
“The leadership, to say the least, is questionable at Family Dollar and it’s been that way for many years,” Icahn told Reuters. CEO Howard Levine “might be a nice guy but he is far from the right leader for Family Dollar.”
Icahn said that Family Dollar and rival Dollar General “would make for perfect partners,” adding the Family Dollar, “in light of its record and the looming competition on the horizon, could use a partner.”
Icahn also spoke more generally to Reuters, telling the news agency that the stock-market rally may have run its course. “In my mind, it is time to be cautious about the U.S. stock markets,” he said. “While we are having a great year, I am being very selective about the companies I purchase.”