Goodlettsville-based Dollar General Bids to Outbid Dollar Tree for Family Dollar
Updated: Monday, August 18 2014, 04:49 PM CDT
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GOODLETTSVILLE, Tenn. (AP) -- There's now a bidding war for Family Dollar, with Dollar General offering about $9.7 billion for the discounter in an effort to trump Dollar Tree's bid.
Dollar General Corp. said Monday that it would pay $78.50 per share in cash, 3 percent higher than Family Dollar Stores Inc.'s Friday closing price of $76.06.
Last month Dollar Tree Inc. made an $8.5 billion bid for Family Dollar. 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.
Dollar General's board unanimously approved the Dollar Tree deal.
Note: Dollar General is based out of Goodlettsville. In fiscal 2013, they reported $17.5 billion in sales. They have more than 11,000 stores in 40 states and employ 100,000-plus employees.
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