Dollar General takes FDO offer directly to shareholders

With offers to buy Family Dollar twice rejected, Dollar General on Wednesday went directly to its rival's shareholders, commencing an $80 per share tender offer.

Family Dollar said its board will review the unsolicited tender offer and respond via SEC filing no later than Sept. 23, and advised shareholders to take no action.

Dollar General said the offer, which values Family Dollar at $9.1 billion, is superior to the $74.50-per-share offer from Dollar Tree that Family Dollar's management and board have said they would continue to pursue despite Dollar General's interest. Family Dollar's board rejected two previous offers from Dollar General, saying the deal it agreed to with Dollar Tree in August presents considerably less antitrust risk.

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Dollar Genenal said Wednesday's tender offer is being made on similar terms as its revised Sept. 2 bid, including a willingness to divest up to 1,500 stores if ordered to by federal regulators and a $500 million reverse-breakup fee. Family Dollar maintained those measures were inadequate.

The company had no immediate response to Wednesday's tender offer.