Market Overview

Report: Family Dollar May Attract Counterbid From Dollar General

Related DG
Bernstein Calls Dollar General 'Our Strategic Winner,' Attractive Takeover Target For Amazon
Will Amazon Expand Into Brick And Mortar? Some Wall Street Analysts Are Saying Yes
Wal-Mart price cuts hit grocery names (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)

View Comments and Join the Discussion!