Family Dollar Up, Hires Morgan Stanley As Advisor Following Icahn Demand
The company, which confirmed meeting with Icahn, said it's making "an in-depth business review," and hired Morgan Stanley as financial adviser.
With the review underway, "we continue to take immediate actions to improve our performance," the company said. The steps will position the company "to deliver stronger returns for our shareholders."
Despite the drama of Icahn's demands, at least one analyst isn't buying the thesis.
MKM's Patrick McKeever thinks Family Dollar is “better off continuing to pursue lower-risk organic growth” rather than a sale.
Its competitor, Dollar General (NYSE: DG), has likely considered an offer in recent years, but declined to bid "for a number of good reasons," McKeever said in a note.
Icahn said Thursday that without company cooperation he will wage a proxy fight, although he called that a "last resort" and prefers to work cooperatively with management.
Icahn seeks to add three members to the board and have it pursue a sale.
Shares of Family Dollar were last trading at $69.12, up 1.45 percent.
Latest Ratings for FDO
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.