Dollar General (NYSE:DG) upped its bid for Family Dollar (NYSE:FDO) and said it would close more than double the number of stores originally promised to allay any antitrust concerns.
The newest bid is equivalent to $80 per share, up from $78.50 per share in the previous bid, according to Dollar General. Last month, Dollar General's $9.7 billion takeover bid was rejected, but the retailer's CEO and chairman, Rich Dreiling, said he would continue to push for a deal.
Dollar General's first bid was rejected—Family Dollar cited antitrust concerns—and a previous offer from Dollar Tree (NASDAQ:DLTR) for $8.5 billion was confirmed. However, ousted Family Dollar CEO and board member Carl Icahn disagreed that the rejected bid was related to law and instead believed the move was more about current CEO Howard Levine's leadership role.
This time around, Dollar General—the country's largest dollar store chain—said it would divest 1,500 stores, more than twice the 700 stores it originally agreed to. The retailer also said it would pay a $500 million reverse breakup fee to Family Dollar if the deal encounters any antitrust roadblocks.
Dreiling said in a statement that the new offer was revised to "demonstrate the seriousness of our commitment."
Family Dollar put the store on sale back in June after a rough fiscal year that ended in the layoff of employees and the closing of 370 underperforming stores.
-See this Dollar General press release
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