Family Dollar Merger Vote Pushed Back; Dollar General Still In Play?

(RTTNews) - Family Dollar shareholders' vote on a proposed merger with rival Dollar Tree Inc. has been delayed until January 22, it was announced Tuesday afternoon.

The vote was set to take place this morning, but was adjourned because of the company said there were "insufficient votes" to approve the deal.

Earlier, a Delaware court dismissed a motion by a group of investors wanting to block the vote in order to consider a hostile bid from Dollar General.

Dollar Tree was offering for $76 per share, or $8.5 billion in cash and stock, while Dollar General has made an all-cash bid for $80 a share, or $9.1 billion.

Family Dollar's board preferred the smaller Dollar Tree offer, saying they were less concerned about regulatory scrutiny that could derail the deal.

In the wake of today's news, Dollar General extended its tender offer to acquire all outstanding shares of Family Dollar for $80.00 per share until January 30.

In a bid to reassure Family Dollar shareholders, Dollar General says it "remains committed to the proposed acquisition of Family Dollar and will continue to cooperate with the Federal Trade Commission (FTC) to obtain antitrust regulatory clearance for the transaction."