Dollar General Opens Bidding War
Makes $9.7B offer for Family Dollar, topping Dollar Tree's $8.5B bid
By Newser Editors and Wire Services
Posted Aug 18, 2014 6:21 AM CDT
In this Sept. 25, 2013, file photo, customers exit a Dollar General in San Antonio. There’s now a bidding war for Family Dollar, with Dollar General offering about $9.7 billion.   (AP Photo/Eric Gay, File)
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(Newser) – There's now a bidding war for Family Dollar, with Dollar General today offering about $9.7 billion for the discounter in an effort to trump Dollar Tree's $8.5 billion bid last month. Dollar General Corp. said today that it would pay $78.50 per share in cash, 3% higher than Family Dollar Stores Inc.'s Friday closing price of $76.06. "Our proposal is financially superior to the current transaction agreement with Dollar Tree," says Dollar General Chairman Rick Dreiling, as per the Wall Street Journal. The combined companies would create a behemoth with 20,000 stores and annual sales that top $28 billion, notes the Journal.

Dollar Tree offered last month to pay $59.60 in cash and the equivalent of $14.90 in shares of Dollar Tree for each share they own. The companies put the value of the transaction at $74.50 per share. Family Dollar's board unanimously approved the Dollar Tree deal.