Dollar General Sends Letter To Family Dollar's Board - Quick Facts

(RTTNews) - Dollar General Corp. (DG) announced it has sent a letter to the board of directors of Family Dollar Stores, Inc. (FDO). Dollar General noted that Family Dollar's Form S-4, on the background of current merger agreement with Dollar Tree (DLTR), failed to mention that Dollar General representatives have consistently expressed a keen interest in putting two companies together.

Dollar General also noted that Form S-4 fails to mention that on more than one occasion at such meetings, Howard Levine expressed his own interest in the social issues of a combination, including, among other things, his desire to be chief executive officer of the combined companies.

Dollar General questioned whether its failure to embrace such requests by Levine weighed into Family Dollar's decision to pursue an agreement with Dollar Tree.

Dollar General also noted that at a meeting held on June 19, 2014, Levine did not disclose that there were discussions with another potential buyer. On July 28, 2014, Family Dollar entered into a merger agreement with Dollar Tree.

Dollar General said that lack of engagement is puzzling and added that as a result, it is now forced to factor a $305 million break-up fee into its offer - consideration.

Dollar General also expressed confidence to quickly and efficiently resolve any potential antitrust issues and urged Family Dollar board to act in the best interests of shareholders and take the necessary steps to enter into discussions.