Tuesday, February 15, 2011

Peltz Offer to Buy Family Dollar

Peltz Offer to Buy Family Dollar - Activist investor Nelson Peltz, famous for his big bets on restaurant chains including Wendy's, disclosed in a filing that he's offering to buy discount retailer Family Dollar Stores Inc. for between $55 and $60 a share in cash.

At $60 a share, a Family Dollar buyout would be worth $7.6 billion.

Charlotte, N.C.-based Family Dollar was up 13 cents at $43.96 in 4 p.m. trading on the New York Stock Exchange. Shares jumped 30% to $57.20 in after-hours trading.

Mr. Peltz said in a regulatory filing that he also offered Howard Levine, the Family Dollar CEO, an opportunity to participate in a company buyout.

Mr. Peltz's New York-based investment firm, Trian Partners, "also advised Mr. Levine that in their view, the ultimate decision of whether the Issuer should be sold should be determined by the Issuer's shareholders," according to the regulatory filing.

Trian owns nearly 8% of Family Dollar's shares, according to today's SEC filing.

Dollar stores consistently have posted strong sales even as the economy slowly improves. During the recession, shoppers turned to the stores for their cut-rate prices on big-name brands of cleaning supplies, food and over the counter medicines.

Peltz Offer to Buy Family Dollar

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