Family Dollar rejects Dollar General offer

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)

MATTHEWS, N.C. (AP) — Family Dollar is rebuffing Dollar General’s takeover bid, citing antitrust issues. The discounter’s board remains supportive of its existing deal with Chesapeake-based Dollar Tree.

Family Dollar Stores Inc. Chairman and CEO Howard Levine said in a statement Thursday that its board and advisers reviewed Dollar General Corp.’s offer and determined it wasn’t likely to be completed on the terms proposed.

On Monday Dollar General — the nation’s biggest dollar-store chain — offered about $8.95 billion for Family Dollar. The company said at the time that it believed it could quickly address any antitrust issues and was willing to divest up to 700 of its stores in order to get the necessary approvals.

Last month Family Dollar agreed to an $8.5 billion deal with Dollar Tree Inc.

 

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 This material may not be published, broadcast, rewritten or redistributed.

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