The popular variety chain store, FDO (Family Dollar Stores) has once again rejected the acquisition offer made by the Dollar General Group.
Dollar General has made an offer of $9.1 billion for the acquisition of Family Dollar. But it seems Family Dollar believes they are worth more than what is offered. In a statement released, the Dollar General stores spokesperson said they are committed to the offer. F
Dollar General has now got the option of approaching the shareholders directly.
Bloomberg states that the only possible way for the Dollar General is to consult the shareholders directly and let them decide whether or not to continue with the deal.
“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,” the Family Dollar CEO Howard Levine said.
Family Dollar accepted an offer of $8.5 billion from Dollar Tree in July in a bid to outrank Dollar General from the top position. This prompted Dollar General to step in with an offer of $78.50-a-share opposed to $74.50-per-share offered by Dollar Tree.
One of the reasons why Family Dollar is interested to close the deal with Dollar Tree is because both are having different business models although both are discount stores.