Family Dollar says state attorney generals to probe Dollar General bid

Fri Sep 26, 2014 6:16pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Reuters) - Family Dollar Stores Inc FDO.N said certain state attorney generals have notified the company that they will investigate larger rival Dollar General Corp's (DG.N: Quote) takeover bid over competitive concerns.

Family Dollar spurned Dollar General's sweetened $9.1 billion all-cash bid earlier this month, saying the offer still did not address antitrust concerns. Family Dollar instead said it was sticking with a lower $8.5 billion cash-and-stock offer from Dollar Tree Inc (DLTR.O: Quote).

After being spurned twice, Dollar General took its bid hostile and approached Family Dollar shareholders directly.

Dollar General has offered to sell up to 1,500 stores and to pay $500 million as break-up fee if the deal failed to clear antitrust reviews.

Family Dollar said on Friday it notified the FTC about the state attorney generals' plans to investigate the Dollar General bid. (

The company did not name the states involved in the investigation.

(Reporting By Nayan Das; Editing by Sriraj Kalluvila)

A Family Dollar logo is seen on a shopping cart in Chicago, June 25, 2012.  REUTERS/Jim Young