Icahn Urges Family Dollar Be Put Up For Sale

(RTTNews) - Activist investor Carl Icahn in a letter to Howard Levine, CEO of Family Dollar Stores Inc. (FDO), urged the company be put up for sale immediately and to add three directors nominated by him to speed up the process.

In the letter, disclosed through a SEC regulatory filing, Icahn said. "We believe there would be significant interest from strategic and financial buyers who could recognize massive synergies from an acquisition of the company." Icahn also believes it to be "a perfect time to sell" the company, given the advantageous stock market and interest rate environment.

In the letter, Icahn referred to a dinner meeting he had with Levine yesterday, but noted that both of them have a "strong difference of opinion as to the future" of the discount retailer. He added that an overwhelming majority of the company's shareholders would be in favor of a sale.

Icahn asked Levine to include three of his representatives to Family Dollar's board to speed up the process and approach likely buyers. He also threatened to take this matter directly to shareholders and to replace Family Dollar's board.

Two-weeks ago, Carl Icahn disclosed that his company Icahn Capital LP had acquired a stake of about 9.4 percent in Family Dollar. However, Family Dollar Stores have adopted a one-year poison-pill strategy with a 10 percent ownership trigger limit.

FDO closed Thursday's trading at $68.14, down $0.08 or 0.12%, on the NYSE. The stock further dropped $1.76 or 2.58%, in the after-hours trade.