Credit Suisse Sees Dollar General Acquisition of Family Dollar in $90-100/Share Range
Credit Suisse analyst Edward Kelly said the DG, FDO fusion makes "compelling strategic sense," and believes Dollar General could pay in the $90-100/share range for Family Dollar if FTC approval is granted. This $90-100/share range equates to a 30-40 percent premium above FDO's current share price of $72.23.
Kelly says the deal could create a dominate retailer through reduced competition and a move towards a more proactive (rather than reactive) management style. Kelly also sees potential cost and revenue synergies resulting from the acquisition.
Dollar General shares last traded at $54.50, up about 0.7 percent for the session. Shares of Family Dollar are up about 3.5 percent.
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|May 2016||Bank of America||Upgrades||Neutral||Buy|
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