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

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

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

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!