Dollar General raises Family Dollar bid to $9.1B - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

Dollar General raises Family Dollar bid to $9.1B

Posted: Updated:
  • NationalMore>>

  • Racing wildfire engulfs homes in California town

    Racing wildfire engulfs homes in California town

    Tuesday, September 16 2014 9:32 AM EDT2014-09-16 13:32:06 GMT
    Dan Linville and his son were sitting in their living room when they smelled smoke. When they looked outside, they saw a black cloud coming over the hills.
    Dan Linville and his son were sitting in their living room when they smelled smoke. When they looked outside, they saw a black cloud coming over the hills.
  • Police: Ohio homicide suspect set himself on fire

    Police: Ohio homicide suspect set himself on fire

    Tuesday, September 16 2014 9:32 AM EDT2014-09-16 13:32:05 GMT
    A man who stepped into traffic and then set himself on fire in an apparent suicide attempt has been connected to a woman found dead in a Cleveland home, authorities said.
    A man who stepped into traffic and then set himself on fire in an apparent suicide attempt has been connected to a woman found dead in a Cleveland home, authorities said.
  • Another Atlantic City bust: Trump Plaza closes

    Another Atlantic City bust: Trump Plaza closes

    Tuesday, September 16 2014 9:13 AM EDT2014-09-16 13:13:30 GMT
    When Trump Plaza opened on May 14, 1984, Donald Trump called it the finest building in Atlantic City, and possibly the nation.
    Trump Plaza Hotel & Casino closed its doors early Tuesday, the fourth Atlantic City casino to go belly-up so far this year.

GOODLETTSVILLE, Tenn. (AP) - Dollar General upped its bid for the rival Family Dollar chain and addressed an earlier roadblock, saying that it will more than double the number of stores it would shed to ease the antitrust concerns of its takeover target.

The newest bid is worth $9.1 billion, or $80 per share, up from $78.50 per share in the previous offer.

Family Dollar, based in Matthews, North Carolina, rejected the earlier bid in favor of a lower offer of $8.5 billion from Dollar Tree Inc., saying that regulators were less likely to stand in the way. Family Dollar said Tuesday that it has received Dollar General's latest bid and will review it.

Dollar General, the country's largest dollar-store chain, says it would now divest as many as 1,500 stores, well above the 700 that it had originally agreed to, in order to sidestep any anti-monopoly actions that regulators might pursue.

The Goodlettsville, Tennessee, company has also said it will pay a $500 million reverse break-up fee to Family Dollar Stores Inc. if the deal hits antitrust roadblocks.

Dollar General Chairman and CEO Rick Dreiling said that a second antitrust review supported its prior bid, but that its offer was revised "to demonstrate the seriousness of our commitment."

The businesses of Family Dollar and Dollar General are more similar than Dollar Tree's. The first two sell items at a variety of prices while at Dollar Tree, all items are a buck.

Family Dollar has been looking for a lifeline after running into some financial stress, shuttering stores and cutting prices. In June one big shareholder, Carl Icahn, urged the company to put itself up for sale.

Family Dollar acted one month later, accepting an offer from Chesapeake, Virginia-based Dollar Tree Inc. of $59.60 in cash and the equivalent of $14.90 in shares of Dollar Tree for each share held. The companies valued the transaction at $74.50 per share at the time. Including debt and other costs, Family Dollar and Dollar Tree estimated the deal to be worth approximately $9.2 billion.

Family Dollar said its board is still supportive of a deal with Dollar Tree and that it won't comment further on Dollar General's revised offer until the board has completed its review.

Shares of Family Dollar added 54 cents to $80.37 in premarket trading, while Dollar General's stock gained 86 cents to $64.85.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • Ukraine parliament ratifies EU pact

    Ukraine parliament ratifies EU pact

    Tuesday, September 16 2014 9:32 AM EDT2014-09-16 13:32:01 GMT
    The city council in Donetsk says three people have been killed and five wounded in shelling overnight in the city in eastern Ukraine.
    Ukraine's parliament ratified an agreement to deepen economic and political ties with the European Union on Tuesday, and passed legislation to grant autonomy to the rebellious east as part of a peace deal.
  • Woman survives 4 days after Nigeria building falls

    Woman survives 4 days after Nigeria building falls

    Tuesday, September 16 2014 9:31 AM EDT2014-09-16 13:31:54 GMT
    Rescue workers say they dug a woman out of the rubble of a building that collapsed four days ago and she walked away with only a slightly dislocated hand.
    Rescue workers early Tuesday dug a woman out of the rubble of a building that collapsed four days ago and she walked away with only a slight injury, a government spokesman said.
  • US to assign 3,000 from US military to fight Ebola

    US to assign 3,000 from US military to fight Ebola

    Tuesday, September 16 2014 9:22 AM EDT2014-09-16 13:22:54 GMT
    The Obama administration is ramping up its response to West Africa's Ebola crisis, preparing to assign 3,000 U.S. military personnel to the afflicted region to supply medical and logistical support to...
    The Obama administration is ramping up its response to West Africa's Ebola crisis, preparing to assign 3,000 U.S. military personnel to the afflicted region to supply medical and logistical support to overwhelmed local...