The dollar store wars continue as Dollar General raises its bid for Family Dollar
Dollar General still wants to buy Family Dollar, and on Tuesday, it upped its bid for the struggling chain.
Dollar General Corp. raised its bid for Family Dollar Stores Inc. to roughly $9.1 billion. Dollar General added that it would more than double the number of stores divested, from 700 to 1500, "to avoid trouble with regulators" and antitrust laws, The Associated Press reports. Dollar General has also offered to fund a $500 million breakup fee to Family Dollar.
Dollar Tree Inc. had originally planned to buy Family Dollar for $8.5 billion, but Dollar General was quick to follow with an original $8.9 billion bid for Family Dollar, which Family Dollar rejected. AP reports that Dollar General's latest bid is worth $80 per share.
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Dollar General CEO Rick Dreiling told AP that the company raised its bid "to demonstrate the seriousness of our commitment."
