In the latest move to take over Family Dollar, Dollar General has made an all-cash bid of nearly $10 billion for Family Dollar.
The bid exceeds that of Dollar Tree which big $75.50 a share cash and stock offer, a deal that’s been valued at $8.5 billion.
Efforts to contact Family Dollar for comment were not successful. The offer was made to the company’s board of directors.
Meanwhile, a spokesperson for Dollar General also declined to comment on whether the board responded to the offer. Then, of course, a spokesperson for Dollar Tree also declined comment on whether that company will be raising or withdrawing its bid in response.
There are high stakes at work on this bidding war. Dollar General boasts 11,300 stores in 40 states and an annual revenue of $17.5 billion. Should Dollar Genera take over Family Stores, which has 8,200 stores, the combined sales would be nearly $28 million
On the other hand, Dollar Tree with its 4,900 stores and annual sales of nearly $8 billion would combine with Family Dollar to create a company with about $18 billion in sales.
According to Rick Dreiling, Dollar General’s chief executive officer, “For Family Dollar shareholders, our proposal is financially superior to the current transaction agreement with Dollar Tree and would provide Family Dollar shareholders with a substantial premium and immediate liquidity for their shares.”
So far, no one knows whether Dollar Tree will engage in a bidding war and up its prior offer.