Family Dollar (NYSE: FDO) Rejects Dollar Tree Offer - Market News | Financial Buzz

Family Dollar (NYSE: FDO) Rejects Dollar General (NYSE: DG) Offer

Dollar Tree, Familly Dollar, Cash, OfferAfter the financial crisis many Americans were left with money problems, they were forced to cut back on certain things and hence the strong emergence of discount stores. Stores like Dollar General Corp. (NYSE: DG), Dollar Tree, Inc. (NASDAQ: DLTR) and Family Dollar Stores, Inc.(NYSE: FDO) have increased it revenue drastically since 2008.

Family Dollar Stores announced earlier this year that it wanted to be acquired by another company because they feel undervalued. Family Dollar Stores have recieved offers from different firms but they are looking to get attention from the right company, a company than can expand Family Dollar Stores to different locations.

In the last month Dollar General has become the frontrunner to acquire Family Dollar Stores, Dollar General has more locations than any other discount chain.  Yesterday Family Dollar Stores rejected the $8.95 billion acquisition offer, mentioning antitrust concerns, and restated its support for a buyout offer from Dollar Tree.

” We will not jeopardize the Dollar Tree deal for a transaction with Dollar General that has a high likelihood of not closing due to antitrust considerations,” Ed Garden, an independent director on Family Dollar’s board, said in a statement on Thursday.

It is safe to say that Dollar Tree has the ball in their court, they are the only company that would have Family Dollar Stores support in this buyout. Whether Dollar Tree decides to make an offer or not Dollar General seems to have wasted their efforts.