Carl Icahn Makes Quick $174M from Family Dollar Stores (FDO) Sale

Carl Icahn pulled it off again.

In June the octogenarian activist investor acquired 10,691,011 shares, or an approximate 9.39% stake, in Family Dollar Stores (NYSE: FDO), pushing for a sale of the company. Today, The Dollar Tree, Inc. (Nasdaq: DLTR) agreed to acquire Family Dollar Stores for $74.50 per share.

Icahn paid approximately $622 million for his shares, or approximately $58.18 per share. This suggests he stands to profit $174 million from the sale.

The sale to Dollar Tree comes as a surprise. Icahn had wanted to put Family Dollar Stores and Dollar General (NYSE: DG) together, but a CEO resignation at DG put a monkey wrench into his plans. Today's news however shows that Icahn once again made a wise and profitable trade even if his original plan didn't work out.

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