Dollar General extends Family Dollar bid; says about 3.6 pct of shares tendered in support

Associated Press

Dollar store operator Dollar General said Friday it is extending its $9.1 billion offer for competitor Family Dollar and disclosed that less than 4 percent of Family Dollar shareholders have supported its bid.

Dollar General's bid is competing with a deal Family Dollar already made to be acquired by another rival, Dollar Tree.

Continue Reading Below

Dollar General's offer, which values Family Dollar at $80 per share, was scheduled to expire Friday. The company extended the offer to Dec. 31. It also said that 4.1 million Family Dollar shares have been tendered in support of its offer. Family Dollar had about 114 million shares on the market as of Oct. 4, so around 3.6 percent of the company's shares have been tendered in support of the Dollar General offer.

In July Dollar Tree agreed to buy Family Dollar for $8.5 billion, or $74.50 in cash and stock, and Family Dollar's board has rejected Dollar General's offer. Family Dollar's shareholders are scheduled to vote on the sale to Dollar Tree on Dec. 11. Dollar General is urging the company's shareholders to reject that offer and tender their shares in support of its bid instead.

Family Dollar has said its business is too similar to Dollar General's and the companies would face antitrust concerns. Dollar Tree sells all items for $1 or less. Family Dollar and Dollar General carry more national brands and items that cost several dollars.

Dollar General is based in Goodlettsville, Tennessee, and its shares rose 23 cents to $62.68 in midday trading. Shares of Matthews, North Carolina-based Family Dollar picked up 18 cents to $78.