Ackman Buys Stake in Family Dollar

NEW YORK — Bill Ackman, chef executive officer and portfolio manager for Pershing Square Capital Management here, said this week he has purchased a stake in Family Dollar Stores, Matthews, N.C., because of speculation that it might be an acquisition candidate.

Ackman, who failed in an attempt to win control of the Target Corp. board in a proxy fight two years ago, said he does not plan to try to pressure Family Dollar management. "It's a good business, it's done very well for a long time, [and] it's an attractive leveraged buyout transaction," he said in a presentation here. Family Dollar rejected a takeover offer in March from Trian Fund Management LP and adopted a defensive position to discourage unsolicited offers.