Family Dollar Stores (FDO)’s Deal with Deal With Dollar Tree (DLTR) Surprised Dollar General (DG)

The proxy from Family Dollar Stores, Inc. (NYSE:FDO) was the subject of discussion on CNBC’s “Squawk on the Street” where the crew talked about the surprise for Dollar General Corp. (NYSE:DG) as it was not aware of a deal coming up between Family Dollar and Dollar Tree, Inc. (NASDAQ:DLTR).

Family Dollar Stores, Inc. (NYSE:FDO)

The proxy also offered more information on the merger talks and even backdated them to 2011.

“Proxy for Family Dollar came out, they got it out pretty quickly and in the proxy, you will see the background of the merger, and it goes on and on starting back in 2011 with Nelson Peltz,” said one of the crew.

According to “Squawk on the Street”, what is in the proxy confirms a lot of what has been there before, especially since Family Dollar Stores, Inc. (NYSE:FDO) sealed a deal with Dollar Tree, Inc. (NASDAQ:DLTR). The retailers agreed to join forces after shareholders on both sides unanimously supported such a move.

As such, Family Dollar Stores, Inc. (NYSE:FDO) will receive $8.5 billion in cash and stock from Dollar Tree, Inc. (NASDAQ:DLTR). On a per share basis, it means $74.50 for Family Dollar shareholders, which also means 23% premium on the price of Family Dollar on the last closing day before the deal was made public.

The CNBC crew went on to say that the Family Dollar’s proxy confirms what they have mostly reported about Dollar General Corp. (NYSE:DG), especially whether it was aware of a coming deal or not. According to the proxy, Dollar General was not aware that a deal was coming.

In fact, the crew recalled that as recently as June 19 Dollar General Corp. (NYSE:DG) distanced itself from a deal with Family Dollar Stores, Inc. (NYSE:FDO), citing that they were not in a strategic transaction.

“Now, since the deal has occurred, as I reported, many of their large shareholders have called them up and said, “you have got to decide to get up to this even without a CEO next year” [...].”

Disclosure: none

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

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

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

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!