Carl Icahn Acquires Over 9% Stake in Family Dollar Stores Inc. (FDO); Seeking Dialogue To Enhance Value

Billionaire Carl Icahn has disclosed a new position in Family Dollar Stores Inc. (NYSE:FDO), which is engaged in operating a chain general merchandise retail discount stores in the United States. According to a new filing with the U.S. Securities and Exchange Commission, Mr. Icahn owns around 10.69 million shares, including options to purchase shares. The stake represents 9.39% of the company’s common shares.

ICAHN CAPITAL Carl Icahn

Mr. Icahn sees great long-term potential in Family Dollar Stores Inc. (NYSE:FDO) industry and intends to talk with the company’s senior management and board of directors to discuss the company’s business and strategies to enhance shareholder value, according to the filing. Mr. Icahn may also determine to seek shareholder board representation.

In a statement, Family Dollar Stores Inc. (NYSE:FDO) said that its board of directors and management team are open to dialogue with all shareholders and welcome input toward the shared goal of enhancing value.

“We are taking steps to strengthen our value proposition, increase operational efficiencies and improve financial performance. We are committed to driving value for all Family Dollar shareholders and will continue to take actions to achieve this important objective,” the company said in a statement.

Recently, the company said that its board has adopted a one-year shareholder rights plan, according to a statement. The rights plan, which has a 10% beneficial ownership threshold and may be amended, redeemed or terminated by the board at any time prior to being triggered, will help the board protect shareholders against any person or group gaining control of the company by open market accumulation or otherwise without paying a control premium for all shares.

Shares of Family Dollar Stores Inc. (NYSE:FDO) rose more than 12% to $68.97 on June 9. The consensus average target price is $56.50, and the consensus average recommendation is ‘Hold’.

For the second quarter of fiscal 2014, the company reported net income of $90.9 million, down from $140.1 million in the same period in 2013. Earnings per diluted share in the second quarter were $0.80, compared to $1.21 in the second quarter of fiscal 2013. The company’s net sales decreased 6.1% to $2.7 billion from $2.9 billion in the second quarter of fiscal 2013.

Disclosure: none

Recommended Reading:

Hedge Fund Highlights: Warren Buffett, Ray Dalio & Chris Hohn

Hedge Fund News: Edward Lampert, Barry Rosenstein & Farallon Capital

J. Carlo Cannell Sends Outraged Letter To ValueVision Media Inc (VVTV)’s Chairman

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!