Tuesday, 31 May 2016
Last updated 3 days ago
Aug 29 2014 | 8:16am ET
Dollar General CEO Rick Dreiling said yesterday that his company remains committed to buying rival Family Dollar Stores, in spite of its opposition to the merger.
Family Dollar last week turned down Dollar General’s $8.9 billion offer, citing antitrust concerns inherent in the marriage of the largest and second-larger discount retailers in the U.S. Family Dollar said it still favors a lower offer from another rival, Dollar Tree.
But Dreiling said that the antitrust matter is “very manageable,” and that his company “can manage the Family Dollar stores more efficiently and effectively.”
A hostile takeover bid would add further bitterness to Dollar General’s relations with Family Dollar. The company last week accused Family Dollar of misleading it about its sale plans, and of favoring a tie-up with Dollar General because it will allow Family Dollar CEO Howard Levine to keep his job.
Hedge-fund investors in Family Dollar appear to be on opposite sides of the brewing battle: Carl Icahn blasted Family Dollar’s efforts “to chill a competing bid,” while Trian Fund Management’s representative on Family Dollar’s board voted to reject the Dollar General bid.