Elliott seeks board seats at Family Dollar, says retailer missed chance for bidding war

Industries Associated Press

Hedge fund Elliott Management is seeking seats on Family Dollar's board, saying it wants to ensure the retailer reconsiders a buyout bid from rival Dollar General.

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Family Dollar Stores Inc. accepted an $8.5 billion cash and stock buyout offer from another discounter, Dollar Tree, in July. But Dollar General also launched a takeover effort.

Dollar General decided to take its $9.1 billion cash bid directly to shareholders after repeated rejections by Family Dollar, which cited concerns over possible antitrust issues.

Elliott Management said Friday that Dollar General has a superior offer and it wants to ensure it has an even playing field. The hedge fund says it also wants to protect its 4.9 percent stake in the company.