Trian Group Denounces Family Dollar ‘Poison Pill’

SN STAFF

MATTHEWS, N.C. — The private investment group whose $7 billion bid to take over Family Dollar Stores was rejected by the retailer’s board of directors is urging the company to remove a recently adopted “poison pill” and reconsider the offer.

Trian Group, in a letter to the Family Dollar board Monday, said it was troubled by the retailer’s adoption earlier this month of a takeover defense that would assess a control charge to any entity acquiring more than 10% of its outstanding stock. Trian currently has an 8% ownership stake. Trian also said it was unsatisfied that Family Dollar reaffirmed a commitment to its strategic plan, saying that it was vague and falls short of the performance of competitor Dollar General.

Trian Group in February offered between $55 and $60 per share to take over the company, but Family Dollar said the offer “substantially undervalues” the company. Trian on Monday said its analysis of Family Dollar’s strategic plan would reach only to the mid-point of its offer by fiscal 2013.