Family Dollar Stores, Inc. (FDO) Rejects Dollar General Corp. (DG) Bid in Favor of Dollar Tree, Inc. (DLTR)’s Offer Citing

When Dollar General Corp. (NYSE:DG) recently outbid Dollar Tree, Inc. (NASDAQ:DLTR) for acquiring Family Dollar Stores, Inc. (NYSE:FDO), the Street expected Family Dollar Stores, Inc. (NYSE:FDO) to go with it. In a surprise move though Family Dollar Stores, Inc. (NYSE:FDO) has rejected Dollar General Corp. (NYSE:DG)’s bid, citing antitrust regulation and plans to go ahead with Dollar Tree, Inc. (NASDAQ:DLTR)’s offer. Robin Lewis, Co-Author of “The New Rules of Retail” discussed about Family Dollar Stores, Inc. (NYSE:FDO) decision on Bloomberg, recently.

Family Dollar Stores, Inc. (NYSE:FDO)

“First of all, the three of them separately and aggregately have been a juggernaut, enormous pressure on Wal-Mart, taken a huge share away from them. I do think a merger of two of the three will just increase that juggernaut and I think that perhaps will happen. Family Dollar Stores, Inc. (NYSE:FDO) may be raising the ante, but we will see,” Lewis said.

Lewis feels that antitrust regulation is not necessarily a problem, since antitrust issues haven’t been raised in a lot of mergers and acquisitions that took place in the past owing to the state of the economy. Lewis mentioned that the concern of Family Dollar Stores, Inc. (NYSE:FDO) to sell 700 of its stores if it has to merge with Dollar General Corp. (NYSE:DG)  might just be a case where Family Dollar Stores, Inc. (NYSE:FDO) already has 700 underperforming stores that it could target to sell.

According to Lewis, Family Dollar Stores, Inc. (NYSE:FDO)  rejecting Dollar General Corp. (NYSE:DG)’s bid and going with Dollar Tree, Inc. (NASDAQ:DLTR)’s offer might be an antitrust issue, but it can also be very well a move from Family Dollar Stores, Inc. (NYSE:FDO) to raise the bids even higher. As of now, the Street is rife with speculations of whether Dollar General Corp. (NYSE:DG) will raise its bid or not.

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!