Nelson Peltz's Trian Shows New 6.6% Stake In Family Dollar Store (FDO); Helds Talks On Improving Sales Per Foot, Utilizing Capital Structure, Creating Value
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In a 13D filing on Family Dollar Stores Inc. (NYSE: FDO), Nelson Peltz's Trian hedge fund disclosed a 6.6%, or 8,722,365 share, stake in the company. The firm did not show a stake in FDO prior to this filing.
In the filing the firm noted it has met with Howard R. Levine, Chairman of the Board and Chief Executive Officer of the Issuer and members of senior management of the Issuer to discuss the Issuer’s business and strategies to enhance value for the Issuer’s shareholders.
During these discussions, the Trian Group communicated its view that there is an opportunity to enhance shareholder value by improving the Issuer’s operational performance.
The firm said it looks forward to working with the Issuer on operating initiatives such as increasing sales per square foot to peer levels, improving the Issuer's operating leverage and optimizing the number of new store openings."
The Trian Group also discussed how the Issuer could utilize its capital structure and significant free-cash flow, including by considering the use of prudent amounts of leverage to increase the size of the Issuer's stock repurchase program.
In addition, the Trian Group provided examples of previous investments they (and/or entities affiliated with them) made in which they had helped create significant value by working together with management teams and boards of directors to improve operations and cash flows and enhance shareholder value.
In the filing the firm noted it has met with Howard R. Levine, Chairman of the Board and Chief Executive Officer of the Issuer and members of senior management of the Issuer to discuss the Issuer’s business and strategies to enhance value for the Issuer’s shareholders.
During these discussions, the Trian Group communicated its view that there is an opportunity to enhance shareholder value by improving the Issuer’s operational performance.
The firm said it looks forward to working with the Issuer on operating initiatives such as increasing sales per square foot to peer levels, improving the Issuer's operating leverage and optimizing the number of new store openings."
The Trian Group also discussed how the Issuer could utilize its capital structure and significant free-cash flow, including by considering the use of prudent amounts of leverage to increase the size of the Issuer's stock repurchase program.
In addition, the Trian Group provided examples of previous investments they (and/or entities affiliated with them) made in which they had helped create significant value by working together with management teams and boards of directors to improve operations and cash flows and enhance shareholder value.
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