The American discount chain Family Dollar has rejected a $9.7 billion takeover bid from a rival retail chain, Dollar General, according to International Business Times UK.
Family Dollar, which is smaller than , Dollar General, insists on keeping the lower, $8.5 million merger deal with Dollar Tree, which is smaller than either of the two discount retailers.
“Our Board rejects Dollar General’s proposal and reaffirms its support for the pending merger with Dollar Tree, ” said chairman and CEO Howard R. Levine.
Family Dollar said it refused the Dollar General offer because it “did nothing to address” the competition that will inevitably stem from the merger.
Levine added: “Our Board reviewed, with our advisors, all aspects of Dollar General’s proposal and unanimously concluded that it is not reasonably likely to be completed on the terms proposed.”
Ed Garden, co-founder of Trian Fund Management, a large shareholder of the company, told IBT he agreed with Levine: “The CEO of Dollar General said he believes that antitrust is not a risk but did not put forth a proposal that eliminates regulatory risk for Family Dollar shareholders.”