Business
Family Dollar Delays Vote on Dollar Tree Deal
This Tuesday, Aug. 19, 2014 photo shows the Family Dollar store in Ridgeland, Miss. Family Dollar Stores Inc. (AP Photo/Rogelio V. Solis)
MATTHEWS, N.C. (AP) — Family Dollar says it has delayed a shareholder vote on its proposed acquisition by Dollar Tree until Jan. 22.
The Matthews, North Carolina-based discount retailer held a special meeting Tuesday for shareholders to vote on the deal. But the company says there were insufficient votes and the decision was delayed.
Family Dollar Stores Inc. has been courting multiple buyout offers.
The company agreed this summer to be acquired by competing retailer Dollar Tree Inc. for $8.5 billion, or $74.50 per share. It rejected a $9.1 billion offer from retailer Dollar General, saying the businesses are too similar and they would face antitrust concerns.
A Delaware judge said Friday that shareholders could vote on the Dollar Tree deal. Some shareholders wanted the vote postponed until the board reviews a potential deal with Dollar General further. The judge determined that Family Dollar’s board acted reasonably in not negotiating with Dollar General, because of antitrust risks and uncertainty that regulators would approve the deal.
Still, Dollar General Corp. on Tuesday extended its offer to acquire the company for $80 per share until Jan. 30. The offer was previously set to expire on Dec. 31. It said about 3.4 million Family Dollar shares had been tendered so far, about 3 percent of the retailer’s shares outstanding.
Shares of Family Dollar increased 26 cents to $79.38 by midmorning Tuesday.
