US: Family Dollar nears buyout vote
The acquisition of Family Dollar has had many ups and downs in a closely watched situation. Now, reports say the saga could be nearing an end.
Two different companies are bidding to purchase the retail chain at different prices, Dollar General (bidding $9.1 billion cash) and Dollar Tree (bidding $8.4 billion cash and stock). The bidding wars are facing scrutiny by the Federal Trade Commission, but on Monday, Family Dollar CEO Howard Levine sent a letter to Family Dollar shareholders to vote for the lesser bid. He claims that the FTC will approve the Dollar Tree merger with “virtual certainty” but that the Dollar General merger is likely to be rejected.
Levine added that for the FTC to approve the merger to Dollar General, at least 4,000 stores would need to be closed to meet antitrust requirements, while the merger to Dollar Tree would only require 310 stores to be closed.
The letter was sent in anticipation of the January 22 shareholders vote on the merger. The meeting was possibly forced by a letter from Dollar Tree CEO Bob Sasser stating that if Family Dollar did not agree to the bid by January 22, financing costs would steeply rise.
“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,” Sasser said.
Full Content: Forbes
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI