UPDATE 3-Family Dollar shareholders approve Dollar Tree deal

Thu Jan 22, 2015 1:48pm EST
 
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* About 74 pct of outstanding shares vote for deal

* Vote a loss for Family Dollar shareholders - Dollar General CEO

* Family Dollar shares up 1 pct, Dollar Tree shares up 2.3 pct

* Dollar General shares up 2.6 pct after CEO term extended (Adds analyst comment, details)

By Sruthi Ramakrishnan and Ken Otterbourg

Jan 22 (Reuters) - Family Dollar Stores Inc's shareholders approved the discount retailer's deal to be bought by Dollar Tree Inc, scuppering a higher hostile offer from larger rival Dollar General Corp.

About 74 percent of the total outstanding shares of Family Dollar, the No.2 U.S. discount retailer, were voted in favor of the deal on Thursday.

Family Dollar accepted its smaller rival's cash-and-stock offer of $8.5 billion in July and later rejected a $9.1 billion all-cash offer from Dollar General, citing antitrust concerns. The biggest U.S. discount retailer then took its offer directly to Family Dollar shareholders.

Dollar Tree later threatened to walk away after Family Dollar shareholders twice postponed voting to approve the deal.   Continued...