Family Dollar Rejects Dollar General Proposal; Supports Dollar Tree Deal

(RTTNews) - Family Dollar Stores, Inc. (FDO) announced its Board has unanimously rejected the non-binding proposal made by Dollar General Corp. (DG) on the basis of antitrust regulatory considerations. The Family Dollar Board also unanimously reaffirmed its recommendation in support of the merger agreement with Dollar Tree, Inc. (DLTR).

Howard Levine, CEO of Family Dollar, said, "Our Board of Directors, with the assistance of outside advisors and consultants, has been carefully analyzing the antitrust issues in a potential combination with Dollar General since the beginning of this year. Our Board reviewed, with our advisors, all aspects of Dollar General's proposal and unanimously concluded that it is not reasonably likely to be completed on the terms proposed. I would also like to note that Dollar General's letter, sent late last night, contained blatant mischaracterizations and did nothing to address the antitrust issues in Dollar General's proposal."

Ed Garden, a co-founder and partner at Trian Fund Management, L.P., a large shareholder of Family Dollar, said, "Given the significant antitrust issues involved with Dollar General's proposal, we will not jeopardize the Dollar Tree deal for a transaction with Dollar General that has a high likelihood of not closing due to antitrust considerations. We remain fully committed to the Dollar Tree transaction."