Dollar General enters bidding for Family Dollar

FILE - In this Tuesday, Nov. 29, 2005, file photo, customers walk past a Family Dollar store at Hickory Grove Market in Charlotte, N.C. Dollar Tree is buying rival discount store Family Dollar in a cash-and-stock deal valued at about $8.5 billion, the companies announced Monday, July 28, 2014. (AP Photo/Ross Taylor, File)
FILE - In this Tuesday, Nov. 29, 2005, file photo, customers walk past a Family Dollar store at Hickory Grove Market in Charlotte, N.C. Dollar Tree is buying rival discount store Family Dollar in a cash-and-stock deal valued at about $8.5 billion, the companies announced Monday, July 28, 2014. (AP Photo/Ross Taylor, File)

GOODLETTSVILLE, Tenn. (AP) — There’s now a bidding war for Family Dollar, with Dollar General offering about $9.7 billion for the discounter in an effort to trump Chesapeake-based Dollar Tree’s bid.

Dollar General Corp. said Monday that it would pay $78.50 per share in cash, 3 percent higher thanFamily Dollar Stores Inc.’s Friday closing price of $76.06.

Last month Dollar Tree Inc. made an $8.5 billion bid for Family Dollar. It offered to pay $59.60 in cash and the equivalent of $14.90 in shares of Dollar Tree for each share they own. The companies put the value of the transaction at $74.50 per share.

Dollar General’s board unanimously approved the Dollar Tree deal.

 

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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