Family Dollar Rejects Dollar General's Tender Offer; Supports Dollar Tree Deal

(RTTNews) - Family Dollar Stores Inc. (FDO) announced Wednesday that its Board unanimously recommends that Family Dollar's shareholders reject the unsolicited conditional tender offer made by Dollar General Corporation (DG) and not tender their shares.

In conjunction with its rejection of Dollar General's offer, Family Dollar's Board unanimously reaffirmed its recommendation in support of the transaction with Dollar Tree Inc. (DLTR).

Howard Levine, Chairman and CEO of Family Dollar, said, "Our Board of Directors, with the assistance of outside advisors and consultants, reviewed all aspects of Dollar General's tender offer and concluded unanimously that this highly conditional Offer is illusory because, as Dollar General is well aware, the Offer cannot close on the terms proposed. Tenders into the Dollar General Offer will be meaningless since there is no way that Dollar General can purchase shares that are tendered."

On 10th September, Dollar General said it had begun a tender offer to acquire all outstanding shares of Family Dollar Stores for $80 per share in cash. Dollar General then said the current offer was better than the $74.50 per share cash / stock offer announced by Dollar Tree in July.