ISS Recommends Family Dollar Stockholders Vote "For" Merger With Dollar Tree

(RTTNews) - Family Dollar Stores Inc. (FDO) announced that Institutional Shareholder Services ("ISS"), a leading independent proxy voting and corporate governance advisory firm, recommends that Family Dollar stockholders vote "FOR" the merger with Dollar Tree, Inc. (DLTR) at Family Dollar's Special Meeting of Stockholders scheduled for January 22, 2015.

In its January 14, 2015, report, ISS stated: "Shareholders should vote FOR the Dollar Tree transaction, which offers significant value and near certainty of closure."

In arriving at its recommendation, ISS considered: "the disclosures by Family Dollar this week that the FTC divestitures required for a Dollar General deal are in the range of 3,500 to 4,000 stores, materially higher than the ceiling in the Dollar General offer of 1,500 stores;"

"there is some risk - and potentially significant risk - of losing the bird in hand entirely if Family Dollar unilaterally adjourns its meeting to again allow Dollar General additional time for its regulatory review."

In response to ISS' favorable recommendation, Howard Levine, Chairman and CEO of Family Dollar said: "We are pleased that ISS recognizes the substantial and certain value the Dollar Tree merger provides Family Dollar's stockholders, and acknowledges that Dollar General's conditional proposal presents significant risks to Family Dollar stockholders. We strongly believe in the value and the strategic benefits of the combination with Dollar Tree that would create the leading discount retailer in North America. ISS's recommendation affirms the unanimous view of our Board that the Dollar Tree transaction is in the best interests of Family Dollar stockholders."