Family Dollar Delays Vote on Dollar Tree

Delay continues dollar war drama over who will acquire Family Dollar, giving Dollar General renewed hope.

December 29, 2014

NEW YORK – In not-unexpected news, Family Dollar has delayed its shareholder vote on a potential acquisition by Dollar Tree; the vote is now slated for Jan. 22, and some analysts say this could bode well for a potential deal with industry giant Dollar General.

Family Dollar convened its Special Meeting of Stockholders as planned last week, but subsequently adjourned without deciding on the proposed Dollar Tree transaction, based on insufficient votes.

According to one analyst, Dollar General had anticipated this postponement, which will give Dollar General time to further its discussions with the FTC.

This summer, Family Dollar agreed to be acquired by competing retailer Dollar Tree for $8.5 billion, rejecting a $9.1 billion offer from Dollar General, saying the businesses are too similar and they would face antitrust concerns.

A Delaware judge said Friday, however, that shareholders could vote on the Dollar Tree deal. Still, Dollar General Corp. extended its offer to acquire the company for $80 per share until Jan. 30. The offer was previously set to expire on Dec. 31.

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