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)

(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.

View 1 more image
More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Dollar General Opens Bidding War is...
Show results without voting
You Might Like
Showing 3 of 9 comments
Aug 18, 2014 3:49 PM CDT
Won't be long before Family Dollar becomes The Five Buck Emporium.
Lou Bernardo
Aug 18, 2014 12:18 PM CDT
And the monoplies grow larger and larger and the competition grows less and prices rise out of control. Yup, that American business today.
Aug 18, 2014 11:29 AM CDT
Half of ten billion could save the planet, just saying.