Family Dollar Stores, Inc. (FDO) In Demand As Dollar Tree, Inc. (DLTR) and Dollar General Corp. (DG) In the Bidding Race Now

Dollar General Corp. (NYSE:DG) has also joined the battle to acquire Family Dollar Stores, Inc. (NYSE:FDO) in an interesting development today. Dollar Tree, Inc. (NASDAQ:DLTR) made a bid for the North Carolina based retail discount store late last month. Joe Feldman, Retail Analyst at Telsey Advisory Group, shared his views on the ongoing bidding war for Dollar General on ‘Bloomberg Surveillance’.

Family Dollar Stores, Inc. (NYSE:FDO)

Family Dollar Stores, Inc. (NYSE:FDO) has been in talks with Dollar Tree, Inc. (NASDAQ:DLTR) since March to be acquired by the latter. Dollar General Corp. (NYSE:DG) was also presumed to be a likely contender but Dollar Tree made the first bid in late July offering $74.50 per share in cash and stock.

Dollar Tree, Inc. (NASDAQ:DLTR)’s plans to take down Dollar General Corp. (NYSE:DG), the leader among the discount retailers, was thwarted by an announcement from Dollar General for an offer for Family Dollar Stores, Inc. (NYSE:FDO). The cash offer from Dollar General is valued at $9.7 billion, which translates into $78.50 per share in cash, which was significantly higher than Dollar Tree’s offer last month. Feldman, however, felt that there is a probability for a counter bid to arise.

“I would think there’s more capacity for both of them to raise their offer. So yes, I would think that there will be a higher bid [...],” he told Tom Keene.

If the bid from Dollar General Corp. (NYSE:DG) goes through, its position as the front-runner of the dollar stores chain will be bolstered. Since the offer was received, both Dollar General’s and Family Dollar Stores, Inc. (NYSE:FDO)’s shares seemed to be on an upward trend with the former growing by almost 8% and the latter by 5%. Feldman reasoned that this was because analysts were looking forward to such a proposal from Dollar General.

“I think people had wanted to see Dollar General get into this deal and there is a lot more direct overlap between the two companies […] So, I think this is a more attractive field for the Family Dollar guys [...],” he said.

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

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!