Family Dollar Shares Rocket Higher As Carl Icahn Shows New Stake
Shares of Family Dollar (NYSE: FDO) have rallied more than $5 in Friday's post-market session following surprising news out of Carl Icahn.
In a 13D filing from the hedge fund manager, Icahn disclosed a brand-new 9.39 percent stake in Family Dollar. The 10.69 million share position now makes Carl Icahn the largest shareholder in the company, behind Chairman and CEO Howard Levine at 9.3 million shares and Nelson Peltz's Trian Fund at 8.36 million shares.
The Item 4 section in Icahn's 13D indicated a belief that shares of Family Dollar are currently "undervalued." The filing said Family Dollar's "current situation is analogous to that recently faced by companies such as CVR Energy, Forest Labs, Chesapeake Energy and Biogen...where [Icahn's] involvement helped to generate tremendous returns for all shareholders."
Family Dollar shares last traded at $66.24, up nearly ten percent from Friday's closing price.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.