Family Dollar eyeing for Seats at Family Dollar
On Friday, Hedge fund Elliott Management Corp. stated that it is seeking seats on Family Dollar's board in an attempt to be reconsidered for a rebuffed buyout bid.
A major investor has claimed that it didn't try hard enough to get top dollar as two bigger rivals made competitive takeover bids this summer. So, investors are now looking forward to shake up the discount retailer's board.
Elliott Management Corporation is the management affiliate of US hedge funds Elliott Associates L.P. and Elliott International Limited. It is a hedge fund that holds 4.9% of this discount chain's shares. In a letter to Family Dollar's leaders on Friday, the Elliott Management stated that it would nominate 7 new directors to its 11-person board ahead of the company's next annual meeting that is expected to take place sometime in July next year.
The letter further accused the current directors of lacking the skills and independence that are required to negotiate the best sale price for the company. This allegation was based on the fact that the company failed to stoke a bidding war between its two suitors, Dollar Tree DLTR and Dollar General DG.
Elliott rejected what it described as the "Dollar General's clearly superior" $9.1 billion all-cash offer last month after taking issue with the board. The bid was rejected in favor of a bid by smaller rival Dollar Tree, which agreed to pay a lesser amount of $8.4 billion in a cash and stock. The deal also calls for keeping Family Dollar CEO Howard Levine, who is the son of the company's founder, in the company after the merger.
The letter also stated that Dollar General has a superior offer and it wants to ensure that it has been given "an even playing field in its continuing efforts to acquire" Family Dollar.
On-stage ballet dancers are the picture of...Read More
Is it possible to be grumpy in gay Paris? Not only...Read More
43-year-old Jérôme Hamon is the first person to...Read More
Congratulations! You've done an excellent job of...Read More