Activist Investor Elliott Nominates Directors at Family Dollar

A Family Dollar store in Charlotte.

A Family Dollar store in Charlotte.

Paul Singer’s Elliott Advisors Ltd. revealed a 4.9 percent stake in Family Dollar Stores Inc., and is pushing America’s second largest retailer to sell to Dollar General Corp., a scenario quite similar to the Carl Icahn scene that happened recently.

According to a statement yesterday, Elliott encouraged the opinion by assigning seven directors. A revitalized board will give an actual playing field for Dollar General, whose $80 per share for Family Dollar was rejected for a much lower offer from Dollar Tree Inc., two months ago.

Family Dollar’s board comprising of 11 members will be appointed at its annual shareholder meeting, which is regularly held in January. The vote on the Dollar Tree offer is most probably set to occur in November. In an event that investors reject it, then they may back Dollar General’s bid to acquire Family Dollar, which would uproot the need to redo the board.

Family Dollar has insisted that it needed to reject Dollar General’s offer since an arrangement between the two organizations would attract antitrust obstacles. Elliott said yesterday that Family Dollar ought to have made a deal with Dollar General to change their outlook on regulatory obstacles. It likewise missed a chance to stir up a bidding war between Dollar Tree and Dollar General, the investor added.

Mark Levine, senior portfolio director at Elliot, in a letter to Family Dollar’s board, said that it is mandatory on the board to make all strides important to survey the deliverability of a predominant Dollar General proposal.

Family Dollar, located in Matthews, North Carolina, affirmed that it got the letter from Elliott and said it would review the nominations, as per an announcement.

Elliott joined Icahn in scrutinizing Family Dollar’s sales process. Icahn ignited the dollar-store ecosystem in June when he displayed  a stake in Family Dollar and started pushing for it to be sold. He’s since been condemning of Family Dollar taking Dollar Tree’s lower bid of $74.50.

In cold-shouldering Dollar General’s offer, Family Dollar said it had more understanding into getting regulatory approval on the grounds that it had been working with the Federal Trade Commission on the Dollar Tree transaction. Family Dollar has said that its market value is frequently controlled by the levels set by close-by Dollar General stores.

Family Dollar and Dollar General likewise have a comparative business plan, with the chains offering items at different costs and providing food generally to low-wage customers. Dollar Tree, interestingly, pulls in more white collar class buyers and offers a majority of its items at $1.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

Apple iPhone 13 Pro and iPhone 13 Pro Max can be a hit with its ever new technology A15 Bionic chip and other cool profound features.
12 hours ago
Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

The French oil major, Total, has signed a $27 billion deal to fund a 1-gigawatt solar power plant, and boost oil and gas production in the Middle-East region.
13 hours ago
PMI seals $1.51 billion takeover of British inhalation specialist Vectura

PMI seals $1.51 billion takeover of British inhalation specialist Vectura

Philip Morris International (PMI) acquires a 22.6% stake in British inhalation specialist Vecutra closing in on the controversial $1.51 billion takeover.
1 day ago
Apple co-founder Steve Wozniak joins the space race

Apple co-founder Steve Wozniak joins the space race

Wozniak, popularly known as “Woz”, is setting up a private space company with Ripcord co-founder Alex Fielding. In a tweet, Wozniak shared a promotional video for the company c
2 days ago
Auto chip shortage affects its production; factory closures rise

Auto chip shortage affects its production; factory closures rise

Automakers like Peugot, Ford, and Toyota are on the run to regain high-margins from the auto chip making since the pandemic and weather disasters have taken over.
2 days ago
Boeing bullish on growth in Asia-Pacific region

Boeing bullish on growth in Asia-Pacific region

Boeing, the US manufacturer projects that its global fleet of airline planes will surpass 49,000 by 2040.
3 days ago