MC 2: MC2 Post 1895 Dancing Deals Around the FAMILY --- GENERAL Dollar Tree

Thursday, August 21, 2014

MC2 Post 1895 Dancing Deals Around the FAMILY --- GENERAL Dollar Tree

Dealpolitik: Dollar General Bid Puts Family Dollar in a Bind

Dollar General said it’s “confident it can quickly and effectively address any potential antitrust issues” and that that it is prepared to divest up to 700 stores for that purpose. And the all-important definition of the companies’ market arguably could extend far beyond the dollar store segment, since most of its merchandise also is sold in grocery stores,

big box stores and online.

But that makes it all the more surprising that the protections offered to Family Dollar in the antitrust area aren’t strong.

A strong antitrust package by a bidder trying to break up another pending deal usually contains one of two provisions.

From: http://blogs.wsj.com

Link: http://blogs.wsj.com/moneybeat/2014/08/19/dealpolitik-dollar-general-bid-puts-family-dollar-in-a-bind/

TinyURL: http://tinyurl.com/k88aybg

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The Deeper Pocket View of the Dollar Situation:

Dollar General Corp.DG +0.02%’s $78.50 per share bid will get the attention of the Family Dollar Stores Inc.FDO -0.15% board. With a cash price of roughly 5% more than Dollar Tree Inc.DLTR -1.69%’s pending cash and stock merger with Family Dollar, Dollar General’s bid seems to be ahead of
Dollar Tree’s offer in terms of value.

Dollar General’s bid, however, offers Family Dollar few protections if antitrust regulators try to block it, leaving Family Dollar
vulnerable to being left with no deal at all.

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