Trian Fund Management has urged Family Dollar Stores to reconsider its rejection of the hedge-fund firm’s takeover offer, Business Journal reports. Trian is set to commit substantial resources to complete its due diligence, finalize financing arrangements and negotiate an acquisition agreement.
Trian Group offered $55-60 per share in cash for the Matthews-based discount retailer, valuing the company at up to $7.6 billion. Family Dollar discarded that offer on March 3, saying the bid substantially undervalued the company. Trian further adopted a shareholder rights “poison pill” plan with a one-year term that will dilute Family Dollar shares in the event of a takeover attempt.
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