Dollar General To Acquire Family Dollar, Allays Fears Of Antitrust Issues

(RTTNews) - Discount retailer Dollar General Corp (DG) Thursday affirmed its commitment to Family Dollar Stores Inc (FDO), which earlier today rejected Dollar General's takeover bid on antitrust concerns.

"We are disappointed that the Family Dollar Board of Directors has concluded that our proposal is not reasonably expected to lead to a superior proposal without informing itself of all relevant information," said Rick Dreiling, Dollar General's chief executive officer.

"We have done extensive antitrust analysis using experienced advisers, the results of which confirm that the transaction as proposed is capable of being completed."

Dreiling also said, "We are carefully reviewing and considering our options. Our existing all-cash proposal coupled with manageable antitrust issues continues to make our proposal superior to the current transaction agreement with Dollar Tree."

Family Dollar meanwhile is committed to its merger deal with Dollar Tree Inc (DLTR).

On Monday, Dollar General made a superior all-cash proposal of $78.50 per share or $9.7 billion in total to acquire rival Family Dollar, thwarting Dollar Tree's $74.50 per share or $9.2 billion cash and stock deal to acquire Family Dollar Stores that was agreed up on in late July.