Connect with us

Hi, what are you looking for?

Jewish Business News

Business

John Paulson’s Say Could Be Crucial in Deciding Who Buys Family Dollar

John Paulson

Family Dollar is up for sale. The question is, who is going to buy it? Dollar Tree made an initial bid for the company of $74.50 a share in July, while Dollar General has gotten into the game with a higher bid of $80. Dollar General seems determined to buy Family Dollar and has threatened to take the issue to shareholders in a hostile bid.

John Paulson, who is the third largest shareholder of Family Dollar with a 7% stake, and who also has a position in Dollar General, has yet to make a public statement about the acquisition. The other two major investors, who own a combined 15% stake in the company, prefer the lower-priced Dollar Tree offer, because that merger would be less likely to run into anti-trust headwinds, since  the merchandise of Dollar Tree and Family Dollar are less similar than that of Family Dollar and Dollar General.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.

If Paulson favors the Dollar Tree bid, it is unlikely Dollar General will be successful in a hostile takeover. Noel Herbert, a Bloomberg analyst commented, “If you get 22% on one side of the fence, it is a pretty high hurdle for Dollar General to cross to win enough shareholders over.”

Dollar General claims that one reason Family Dollar favors the Dollar Tree bid, even though it is for less money, is that the merger will keep Howard Levine as CEO. Levine is the largest shareholder of Family Dollar, and owns 9.3 million shares or 8.3% of the company.

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.