Family Dollar To Review And Consider Dollar General's Offer

(RTTNews) - Family Dollar Stores, Inc. (FDO) confirmed that it has received a non-binding, unsolicited proposal from Dollar General (DG) to acquire all of the outstanding common shares of Family Dollar for $78.50 per share in cash, contingent on due diligence and regulatory approval.

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

Family Dollar said it remains subject to the merger agreement with Dollar Tree, and the company's Board of Directors has not changed its recommendation in support of the merger with Dollar Tree.

Earlier, Monday, Dollar General (DG) announced it has made a proposal to acquire Family Dollar Stores, Inc. (FDO) for $78.50 per share in cash, in a transaction valued at $9.7 billion. Dollar General said its all-cash proposal would provide Family Dollar shareholders with a substantially superior valuation to the $74.50 per share cash/stock offer announced by Dollar Tree, Inc. on July 28, 2014.

On July 28, 2014, Family Dollar said it has 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. Under the terms of the agreement, 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.