Family Dollar Adopts 1-year Shareholder Rights Plan - Quick Facts

(RTTNews) - Discount retailer Family Dollar Stores Inc. (FDO) has adopted one-year shareholder rights plan, whose details are to be included in a Form 8-K to be filed with the U.S. Securities and Exchange Commission or SEC. All the company's directors voted FOR the adoption of the rights plan, other than Edward Garden who voted against the plan.

The rights plan, which has a 10% beneficial ownership threshold and may be amended, redeemed or terminated by the board at any time prior to being triggered, would help the board protect shareholders against any person or group gaining control of the firm by open market accumulation or otherwise without paying a control premium for all shares. The plan applies equally to all current and future stockholders and is not designed to prevent an offer to buy the company, but rather to allow the board adequate time to consider any and all alternatives. The rights plan would not impact the firm's financial reporting or the manner in which the company's common stock trades.

Morgan Stanley & Co. Inc. is acting as financial advisor to Family Dollar and Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel.