News

Dollar Tree to buy Family Dollar for $8.5 billion

Dollar Tree to buy Family Dollar for $8.5 billion

Customers walk past a Family Dollar store at Hickory Grove Market in Charlotte, N.C. Photo: Associated Press/Ross Taylor, File

(Reuters) – Discount store chain Dollar Tree Inc offered to buy rival Family Dollar Stores Inc for about $8.5 billion, in a deal the companies said would create North America’s leading discount retailer.

Dollar Tree’s offer of $74.50 per share in cash and stock represents a premium of about 23 percent over Family Dollar’s close of $60.66 on Friday. Family Dollar had about 114 million shares outstanding as of July 5.

Shares of Family Dollar, which has been under pressure from activist investor Carl Icahn to sell itself, rose about 21 percent to $74.00 in premarket trading on Monday.

Dollar Tree shares were up 4.2 percent at $56.50.

Family Dollar shareholders will get $59.60 in cash and $14.90 in stock for each share they hold.

Family Dollar caters to lower-income shoppers, many living paycheck to paycheck, while Dollar Tree mostly targets the middle class.

Icahn, Family Dollar’s largest shareholder with a 9.4 percent stake, wanted the company to sell itself to Dollar General Corp to help it cope with stiff competition from big-box retailers such as Wal-Mart Stores Inc .

J.P. Morgan Securities LLC is financial adviser to Dollar Tree, and Morgan Stanley & Co. LLC is financial adviser to Family Dollar.

(Reporting by Ramkumar Iyer and Devika Krishna Kumar in Bangalore; Editing by Savio D’Souza)

What's Goin' On

Rob Zombie and Disturbed Weekend

disturbed-zombie

Listen all weekend to win a pair of tickets to Rob Zombie and Disturbed at the US Cellular Center on May 17th.

Prairie Meadows Finish Line Funnies

Logo_prairie_med

Enjoy free live comedy from Dr. Gonzo this Thursday at 7 PM at the Prairie Meadows Finish Line Show Lounge.

IA Wild: Hero of the Game

HeroLazer

Submit your nominations for the Hero of the Game now and honor a member of the United States’ Armed Forces.

Hire Me Iowa

HireMeIowa_620x400_final

Looking for a job around the Des Moines area? Check out our current job listings here.

Join LAZER TNA

:Lazer_EmailClub-01

Join LAZER TNA (Total News and Access) and you would win cool prizes!

Hottie of the Day

Feb. 12, 2016