This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-28882751
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Family Dollar rejects rival's $9.7bn takeover bid | Family Dollar rejects rival's $9.7bn takeover bid |
| (about 2 hours later) | |
| Family Dollar, the US discount retailer, has rejected a $9.7bn (£5.8bn) bid from larger rival Dollar General. | Family Dollar, the US discount retailer, has rejected a $9.7bn (£5.8bn) bid from larger rival Dollar General. |
| Family Dollar said the offer could face competition issues and "did nothing to address" the matter. | Family Dollar said the offer could face competition issues and "did nothing to address" the matter. |
| The company said that it would continue to pursue a merger with a third discount chain, Dollar Tree. | The company said that it would continue to pursue a merger with a third discount chain, Dollar Tree. |
| Family Dollar and Dollar Tree had already agreed a merger before Family Dollar launched a rival bid this week. | Family Dollar and Dollar Tree had already agreed a merger before Family Dollar launched a rival bid this week. |
| US dollar stores expanded fast during the economic downturn. But many have faced competition from stores such as Wal-Mart, and Family Dollar has been closing stores and struggling financially. | US dollar stores expanded fast during the economic downturn. But many have faced competition from stores such as Wal-Mart, and Family Dollar has been closing stores and struggling financially. |
| Howard Levine, chief executive at Family Dollar, said the board had "unanimously concluded that [a deal with Dollar General] is not reasonably likely to be completed on the terms proposed". | Howard Levine, chief executive at Family Dollar, said the board had "unanimously concluded that [a deal with Dollar General] is not reasonably likely to be completed on the terms proposed". |
| Personal decision? | |
| But Dollar General suggested Mr Levine's support of Dollar Tree was motivated by self-interest as he would have lost his job if Dollar General had won the bid. | |
| Under Dollar Tree's proposal, Mr Levine would remain Family Dollar's boss. | |
| The move under Dollar General would have been good for shareholders but "perhaps not for Mr Levine personally," said the spurned company. | |
| Rick Dreiling, chief executive of Dollar General, made the comments in a letter to Family Dollar's board on Wednesday. | |
| Many Family Dollar stores are in deprived areas. It has a big presence in Texas and the eastern US. |