Family Dollar preps for vote on $8.5B Dollar Tree merger

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Ben Torres | Bloomberg

​Family Dollar Stores Inc. is preparing for a shareholder vote on its pending $8.5 billion merger with Dollar Tree Inc.

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Jennifer Thomas

Staff Writer- Charlotte Business Journal

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Family Dollar Stores Inc. (NYSE: FDO) has set Oct. 30 as its record date to determine which shareholders are entitled to vote on its proposed $8.5 billion merger with Dollar Tree Inc. (NASDAQ:DLTR).

The Matthews-based discount retailer announced in late July that it would be acquired by Dollar Tree in a deal valued at $74.50 in cash-and-stock per share.

Family Dollar has not yet announced the date, time and location of the special meeting for shareholders to vote on that deal.

The Federal Trade Commission is still reviewing the proposed transaction.

At the same time, Dollar General Corp. (NYSE:DG) continues its efforts to win Family Dollar. It has taken its latest offer of $80 in cash per share directly to Family Dollar's shareholders. It also is seeking FTC approval for that deal to eliminate antitrust concerns.

Family Dollar's board has rejected two previous offers from Dollar General, saying the deal could not close on the terms proposed because of antitrust issues.

Not all shareholders agree with that stance. On Friday, hedge fund Elliott Advisors (UK) Limited — which holds a 4.9 percent stake in Family Dollar — said it has nominated seven candidates for the Family Dollar board in a show of support for Dollar General to acquire the company.

"We would like to be clear that nominating directors was not our preferred path," Mark Levine, senior portfolio manager for Elliott, writes in a letter addressed to Family Dollar CEO Howard Levine and the board. "Unfortunately, the actions of the Board to date in connection with the strategic review process fail to sufficiently demonstrate that the Board has had the best interests of its shareholders in mind."

Jennifer Thomas covers retail, health care and education for the Charlotte Business Journal.