Wow, this will be hard to explain at the SEC hearing. Howard Levine, CEO and Chairman of Family Dollar Stores (NYSE:FDO), just went ahead and sold $134 million in shares before the company’s almost certain merger with Dollar Tree (NASDAQ:DLTR).
Seekingalpha.com commented that Levine, son of Family Dollar Sores’ founder, and a bunch of other insiders, have “executed the most questionable and bizarre pre M&A activity.”
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The sold shares came to about 40% of Levine’s direct holdings. He dumped those stocks—there’s no other way to describe these transactions, which have recently been disclosed in a Form 4 filing on SEC.gov.
When the CEO is getting rid of such a huge amount it is questionable at any time. His doing it before his company’s merger with Dollar Tree puts into question the true value of the company and of the merger.
