Family Dollar Gets FTC Request For Addl. Information

(RTTNews) - Discount retailer Family Dollar Stores, Inc. (FDO) said Friday that it has received a request for additional information from the Federal Trade Commission in connection with the unsolicited conditional tender offer to acquire all of the outstanding common stock of Family Dollar commenced by rival Dollar General Corp. (DG).

Meanwhile, Dollar General also said it has received a request for additional information from the FTC relating to its tender offer to acquire all of the outstanding common stock of Family Dollar.

The effect of the second request is to extend the waiting period imposed by the HSR Act until 30 days after Dollar General and Family Dollar have substantially complied with the request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC.

Family Dollar has been in the midst of a takeover struggle between Dollar Tree Stores Inc. (DLTR) and Dollar General, whose offer it has repeatedly spurned.

In July, Family Dollar agreed to be acquired by Dollar Tree for $74.50 per share in a cash and stock deal valued at $9.2 billion. In August, Dollar General made a superior all-cash proposal to buy Family Dollar for $78.50 per share or $9.7 billion to thwart the Dollar Tree bid. But Family Dollar rejected the bid, citing antitrust regulatory considerations, and reaffirmed its merger deal with Dollar Tree.

Dollar General sweetened its offer by $1.50 to $80.00 per share, and also raised the number of stores it was willing to divest if ordered by the FTC.