Family Dollar In Play As Nelson Peltz and Trian Become The Third Largest Holder

In a 13D, Nelson Peltz and his Trian Fund Management took a 6% stake in Family Dollar

. Trian Management GP are owned and/or controlled by Nelson Peltz, Peter W. May and Edward P. Garden, who therefore are in a position to determine the investment and voting decisions made by the Trian Entities. Trian has been quiet for a few months, do not be surprised to see more 13D's filed in the next couple months. Maybe Trian can get Wendy's in Family Dollar Stores. As of 4:00 p.m., New York City time, on July 27, 2010, the aggregate purchase price of the 4,946,759 Shares purchased by Trian Onshore, Trian Offshore, Parallel Fund I and TPSIF collectively was $168,698,208. Trian believes the shares are currently undervalued and represent an attractive investment opportunity. The Trian Group has met with Howard R. Levine, Chairman of the Board and Chief Executive Officer to discuss the Issuer’s business and strategies to enhance value for the Issuer’s shareholders. During these discussions, the Trian Group communicated its view that there is an opportunity to enhance shareholder value by improving the Family Dollar's operational performance. Trian is going to work with Family Dollar on increasing sales per square foot to peer levels, improving the FDO's operating leverage and optimizing the number of new store openings. The Trian Group also discussed with Family Dollar how it could utilize its capital structure and significant free-cash flow, including by considering the use of prudent amounts of leverage to increase the size of the Issuer’s stock repurchase program. Learn how to find the best

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