Icahn Issues Release on Family Dollar Stores (FDO); Big Win, But Sees Other Bidders

Carl Icahn issues press release on Family Dollar Stores (NYSE: FDO) takeover by Dollar Tree, Inc. (NASDAQ: DLTR):

While we continue to believe there are a handful of potential buyers who could realize greater synergies through a combination with Family Dollar and are hopeful that one or more of them will surface as a result of today’s announcement, we are extremely pleased with Dollar Tree’s intention to acquire Family Dollar in a transaction that values the company at $74.50 per share. This is a big win for all shareholders of Family Dollar and yet another validation of the activist investment philosophy in general.

An investor that had bought Family Dollar shares on June 6, 2014, the date our investment in the company was first made public, and held those shares through today (assuming the $74.50 deal price), would have paid $60.53 per share and realized a total return of 23.7% (as compared to a total return of only 1.5% for the S&P 500 Index over that same period). Over the period since we began purchasing the stock, the common shareholders of Family Dollar have enjoyed an aggregate gain in market value of almost $1.9 billion, an increase of over 28.5%.

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