Market Overview

Report: Family Dollar May Attract Counterbid From Dollar General

Related DG
Stephen Mandel's Lone Pine Capital Loves Tech, Consumer Stocks
Paulson & Company's Q4 Moves: Healthcare And Beyond
Where hedge funds have bets in the consumer staples/discretionary sectors (Seeking Alpha)

Dollar General (NYSE: DG) may seek to top the recent $8.5 billion offer on Family Dollar (NYSE: FDO) from Dollar Tree (NYSE: DLTR), according to a report Tuesday.

The possible bidding skirmish, reported by Bloomberg, comes about a week after the boards of both Family Dollar and Dollar Tree approved the $74.50 per share merger plan.

Dollar General has hired an adviser to evaluate a possible counter bid which could be paid for with bank financing, according to unnamed sources cited by Bloomberg, who put the chances of a new offer at 50 percent.

Analysts have suggested that a merger of Family Dollar and Dollar Tree would put Dollar General at risk of an unwanted takeover.

Other potential counter-bids for Family Dollar are seen as at least feasible coming from Wal-Mart Stores and Target, although neither have expressed interest.

Dollar General changed hands recently up 3.02 percent at $57.60; Family Dollar was up 2.4 percent at $77.54; Dollar Tree was down 2.1 percent to $54.75.

Posted-In: BloombergNews Rumors M&A Hot


Related Articles (DLTR + DG)

Around the Web, We're Loving...

Get Benzinga's Newsletters