Family Dollar Issues Letter To Stockholders - Quick Facts

(RTTNews) - Family Dollar Stores Inc. (FDO) has published a letter from its CEO Howard Levine to the company's stockholders. In the letter, Howard Levine, stated that the most recent feedback from the FTC staff reaffirmed the statements that the company has been making for several months about the inability of the Dollar General proposal to be consummated on the terms proposed by Dollar General and the certainty of the Dollar Tree (DLTR) merger. Howard Levine stated that the antitrust clearance of the Dollar Tree merger on its terms and in a timely manner is a virtual certainty.

Family Dollar CEO said Dollar General has still offered to divest only up to 1,500 stores and remains committed to the position that no more than 700 stores will be required to be divested. Accordingly, the Family Dollar Board continues to be of the unanimous view that the current Dollar General proposal is not reasonably likely to be completed on the terms proposed by Dollar General and that discussions with Dollar General are not reasonably expected to lead to a new proposal that is reasonably likely to be completed on its terms.

In anticipation of the Special Meeting, the CEO of Dollar Tree delivered a letter to Family Dollar CEO on January 9, 2015, in which he said: "It is imperative that the shareholder vote on the merger be held on January 22, both to eliminate the uncertainty that is continuing to damage Family Dollar's business and because Dollar Tree's financing costs go up substantially after that date. Dollar Tree is not willing to agree to any further adjournments of the shareholder meeting. After two delays, we have been more than reasonable but have reached the end of our patience."