Activist investor Carl Icahn cut his stake in Family Dollar Stores Inc (FDO), a day after the company agreed to be bought by rival discount chain Dollar Tree Inc for $8.5 billion.

Icahn said he was "determined" to dispose part of his stake rather than wait for the deal to close or for higher offers to emerge.

Icahn reported a 6.03 percent stake on Tuesday, down from about 9.39 percent that made him the largest shareholder. 

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)