Family Dollar Confirms Receipt Of Sweetened Bid From Dollar General

(RTTNews) - Discount retailer Family Dollar Stores, Inc. (FDO) Tuesday confirmed that it has received a revised, non-binding, unsolicited proposal from Dollar General (DG) to acquire all of the outstanding common shares of Family Dollar.

Earlier in the day, Dollar General said it would increase its all-cash proposal for all outstanding shares of Family Dollar to $80.00 per share.

Family Dollar's Board of Directors, in consultation with its legal and financial advisors, will review and consider the revised proposal.

Family Dollar in July entered into a definitive merger agreement with Dollar Tree, Inc. (DLTR) under which Dollar Tree would acquire Family Dollar in a cash and stock transaction.

Family Dollar shareholders would receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares for each common share of Family Dollar owned, subject to a collar.

At closing, Family Dollar shareholders would own no less than 12.7 percent and no more than 15.1 percent of the outstanding common stock of Dollar Tree.

The company said today its Board of Directors has not changed its recommendation in support of the merger with Dollar Tree.

Family Dollar said it would have no further comment on Dollar General's proposal until the Board has completed its review.