Family Dollar Shareholders approve Takeover Bid by Dollar Tree
On Thursday, Family Dollar shareholders approved a takeover offer from rival Dollar Tree. Shareholders of the variety store chain agreed to the deal despite higher competing offers from variety Stores company Dollar General.
As per the report, the deal will be approved by the Federal Trade Commission. Family Dollar has been expecting to close the deal by March. In July 2014, Dollar Tree had proposed a plan to buy North Carolina-based Family Dollar for about $8.5 billion. Dollar General offered higher bid that was rejected by Family Dollar.
In a statement, Dollar General said that the vote was a loss for shareholders of Family Dollar. According to Dollar General's CEO Rick Dreiling, "Family Dollar's lack of engagement and a contracted transaction timeline ultimately prevented us from completing this transaction".
Most recently, Dollar General had offered about $9.1 billion to Family Dollar. The variety store chain with about 8,100 locations refused the offer and said that it rejected the bid because it would be difficult to get approval from regulators.
On Thursday, shares of all the three companies rose. Dollar Tree's share rose by about 3.5% to $70.2, Family Dollar Stores' share rose by 1.2% to $76.4, while Dollar General's share rose by about 3.5% to $69.6.
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