Dollar General offers cash for Family Dollar

Dollar General (NYSE:DG) has again sweetened its bid for Family Dollar (NYSE:FDO) by offering $80 per share, in cash. The company also said it would promptly file for antitrust approval with the Federal Trade Commission.

Dollar General's latest offer will expire at 5:00 p.m. Eastern time on Oct. 8 unless extended. This is the third iteration of a bid for Family Dollar. The first $9.7 billion takeover bid was rejected for antitrust reasons, according to Family Dollar. The company said it would stick to its original deal with Dollar Tree (NASDAQ:DLTR) for $8.5 billion.

Dollar General's second bid was equivalent to $80 per share, up from $78.50 per share in the previous bid, and promised to more than double the amount of store closures to allay any antitrust concerns.

"Our offer provides Family Dollar shareholders with significantly greater value than the existing agreement with Dollar Tree, as well as immediate and certain liquidity for their shares," said Rick Dreiling, chairman and CEO of Dollar General. "By taking this step, we are providing all Family Dollar shareholders a voice in this process, and we urge them to tender into our offer."

"Additionally, we now can begin the antitrust review process and will have an opportunity to present our position directly to the FTC. As we previously have stated, we are confident in the results of our antitrust analysis, and we look forward to a constructive dialogue with the FTC," Dreiling said.

Dollar General's $80 per share offer is a substantial hike from Dollar Tree's $74.50 per share offer back in July.

"Dollar General's offer provides Family Dollar's shareholders with approximately $640 million of additional aggregate value over Dollar Tree's offer," a Dollar General statement said.

As set forth in Dollar General's previous offer, the company would divest up to 1,500 stores if required by the FRC and pay Family Dollar a $500 million reverse break-up fee if the transaction did not close for antitrust reasons.

For more:
-See this Dollar General press release

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