Dollar General has bid $78.50 per share, or about $9.7 billion, for Family Dollar Stores, the firm said in a statement Monday. The offer surpasses a prior offer made by Dollar Tree.
Dollar Tree made an $8.5 billion bid for Family Dollar in late July. It offered to pay $59.60 in cash and the equivalent of $14.90 in shares of Dollar Tree for each share they own. The companies put the value of the transaction at $74.50 per share.
Rick Dreiling, Dollar General’s chairman and chief executive officer, said Monday: “For Family Dollar shareholders, our proposal is financially superior to the current transaction agreement with Dollar Tree and would provide Family Dollar shareholders with a substantial premium and immediate liquidity for their shares.”
Dollar General’s pre-market shares traded around 9% higher on Monday.
SOURCE: USA Today – Kim Hjelmgaard