June 9, 2014 / 7:09 PM / 3 years ago

Exclusive: Icahn - Family Dollar poison pill puts damper on 'friendly dialogue'

Billionaire activist investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York in this February 11, 2014 file photo. REUTERS/Brendan McDermid

(Reuters) - Billionaire shareholder activist Carl Icahn told Reuters on Monday that the Family Dollar Stores Inc FDO.N poison pill is a “quintessential example” of attorneys “simply earning fees.”

Icahn said the poison pill also “puts a damper” on prospects for a “friendly dialogue” with Family Dollar executives.

Family Dollar adopted a poison pill to buy time to consider any possible deal that Icahn could push for after becoming its largest shareholder.

Icahn said on Friday in a filing that he had a 9.39 percent stake in Family Dollar and said he was considering to push the $6.89 billion company for a merger with rival Dollar General Corp (DG.N).

“The poison pill especially in this case is a quintessential example of attorneys simply earning fees - how does it possibly help shareholders by putting a pill in?” Icahn said.

“How does it possibly matter if I own 10 percent or 15 percent of a company? All it does is it makes it more difficult to have a friendly dialogue, which we already are planning to have. It puts a damper, at least from my perspective, for the friendly dialogue.”

Reporting by Jennifer Ablan; Editing by Chizu Nomiyama and Richard Chang

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