Family Dollar Stores, Inc. (FDO): Paul Singer’s Elliott Management Raises Activist Stake; Proposes Slate of Directors Candidates

Carl Icahn was one of the investors that pushed for the sale of Family Dollar, but was disappointed with the outcome. Mr. Icahn initiated a stake with 9.39% of the company at the beginning of June and soon after that he sent a letter to the CEO of the company urging him to put the company up for sale. However, as Mr. Icahn expected a merger between Family Dollar Stores, Inc. (NYSE:FDO) and Dollar General Corp. (NYSE:DG), after the company agreed to be acquired by Dollar Tree, he cut down the stake, still obtaining a couple of hundred million dollars.

In this way, as the special meeting of Family Dollar Stores, Inc. (NYSE:FDO)’s shareholders is expected in a couple of weeks, Mr. Singer’s strategy to nominate a new slate of directors for the next meeting of shareholders is an interesting strategy. Elliott has not disclosed its position regarding the merger and we shall wait and see as more details surrounding this story appear.

Disclosure: none