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

BMO Capital Downgrades Dollar Tree (DLTR) to Market Perform

BMO Capital downgraded Dollar Tree (NASDAQ: DLTR) from Outperform to Market Perform with a price target of $59.00 (from $69.00).

For an analyst ratings summary and ratings history on Dollar Tree click here. For more ratings news on Dollar Tree click here.

Shares of Dollar Tree closed at $54.87 yesterday.

Carl Icahn Comments on Family Dollar (FDO) Deal; Says 'Activism is Alive And Well'

Carl Icahn today released the following statement regarding Family Dollar Stores, Inc. (NYSE: FDO):

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... More

Family Dollar Stores (FDO) Moves Higher on DG/DLTR Bidding War Speculation

Family Dollar Stores (NYSE: FDO) is ticking higher on speculation of a bidding war between Dollar General (NYSE: DG) and Dollar Tree, Inc. (NASDAQ: DLTR). Shares of FDO are up 24% to... More

Credit Suisse Downgrades Dollar Tree (DLTR) to Neutral

Credit Suisse downgraded Dollar Tree (NASDAQ: DLTR) from Outperform to Neutral.

For an analyst ratings summary and ratings history on Dollar Tree click here. For more ratings news on Dollar Tree click here.

Shares of Dollar Tree closed at $54.22 yesterday.

Dollar Tree (DLTR) to Acquire Family Dollar (FDO) for $74.50/Share

Dollar Tree, Inc. (Nasdaq: DLTR) and Family Dollar Stores, Inc. (NYSE: FDO) announced that they have entered into a definitive merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction. The value of the consideration is $74.50 per share, a 22.8% premium over Family Dollars closing price as of July 25, 2014.

The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close by early 2015, at which time the Family Dollar shareholders will receive $59.60 in cash and $14.90 equivalent in Dollar Tree shares, subject to the collar described below. At closing, Family Dollar shareholders will own no less than 12.7% and no more than 15.1% of the outstanding common stock of Dollar Tree. Howard R. Levine and Trian Fund Management, L.P. and funds managed by it, which collectively own approximately 16% of the outstanding stock of Family Dollar, have entered into voting agreements in support of the merger.

This is a transformational opportunity, stated Bob Sasser, Dollar Trees Chief Executive Officer. With the acquisition of Family Dollar Stores, Dollar Tree will become a leading discount retailer in North America, with over 13,000 stores in 48 states and five Canadian Provinces, sales of over $18 billion, and more than 145,000 associates on our team. We will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands, and when this transaction is complete, we will operate under the Family Dollar brand as well. Throughout our history, we have strived continuously to evolve and improve our business. This acquisition, which enhances our footprint and diversifies our company, will enable us to build on that progression, and importantly, positions Dollar Tree for accelerated growth. By offering both fixed-price and multi-price point formats and an even broader, more compelling merchandise assortment, we will be able to provide even greater value and choice to a wider array of customers.

Dollar Tree has a long record of consistent, profitable growth, strong financial performance, prudent capital management, and outstanding total shareholder returns. The acquisition of Family Dollar is consistent with... More