Tags: Family Dollar Strategic Plan

Family Dollar Board Rejects Investor Takeover Bid

Thursday, 03 Mar 2011 08:13 AM

Family Dollar Stores Inc. is rejecting a takeover bid by an activist investor, saying it "substantially undervalues the company."

The discount retailer also adopted a shareholder rights plan, commonly called a "poison pill," that would significantly dilute shares if a takeover attempt proceeds.

Nelson Peltz's Trian Group in February offered $55 to $60 per share for Family Dollar, valuing it at $6.99 billion. Peltz, Family Dollar's largest shareholder, started increasing his stake in the company last summer, saying the stock was undervalued.

Family Dollar's board says pursuit of a sale of is not in the best interest of shareholders, and that the best way to deliver value to shareholders is to continue implementing the company's strategic plan.

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Family Dollar Stores Inc. is rejecting a takeover bid by an activist investor, saying it substantially undervalues the company. The discount retailer also adopted a shareholder rights plan, commonly called a poison pill, that would significantly dilute shares if a...
Family Dollar Strategic Plan
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2011-13-03
 

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