Dollar General Corp. is taking its $9.1 billion offer for Family Dollar Stores Inc. to shareholders, after its offer was rejected by the board, the Wall Street Journal reported.
Dollar General officially announced it will tender to buy the company’s shares for $80 in cash.
It’s a move to convince investors to reject Family Dollar’s current agreement to be bought by Dollar Tree Inc. for only $8.5 billion.
“Our offer provides Family Dollar shareholders with significantly greater value than the existing agreement with Dollar Tree, ” said Rick Dreiling, chairman and chief executive of Dollar General. “By taking this step, we are providing all Family Dollar shareholders a voice in this process, and we urge them to tender into our offer.”
Dollar General plans to sell as many as 1, 500 stores if it manages to get the merger, but it doesn’t believe it should come to that.
And Family Dollar is saying its decision to reject Dollar General’s proposed merger has to do with that antitrust concerns.