Family Dollar (NYSE:FDO) announced that its board has unanimously rejected Dollar General's (NYSE:DG) latest bid. The board has reaffirmed its recommendation of sticking to a previous agreement with Dollar Tree (NASDAQ:DLTR) for $8.5 billion.
The board stated that the offer, as with the first bid made on Sept. 2, was rejected based on antitrust regulatory considerations.
Dollar General originally offered $9.7 billion to take over Family Dollar. The second offer sweetened its bid by offering $80 per share, in cash, and a promise to file for antitrust approval with the Federal Trade Commission.
"The terms of the Dollar General Offer are no different from those in its most recent unsolicited proposal, which was previously and unanimously rejected by our board of directors based on antitrust regulatory considerations," said Howard Levine, chairman and CEO of Family Dollar. "There is a very real and material risk that the transaction proposed by Dollar General would fail to close, after a lengthy and disruptive review process. Accordingly, our Board has rejected Dollar General's tender offer and reaffirmed its support of the transaction with Dollar Tree, which delivers attractive value in the form of immediate upfront cash and upside participation in a combined Dollar Tree-Family Dollar entity, as well as closing certainty."
-See this Family Dollar press release
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