Dive Brief:
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In a letter to Family Dollar CEO Howard Levine, hedge fund company Elliott Management Friday nominated a slate of seven new directors to discount retailer Family Dollar’s board.
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In the letter with its nominations, the activist investor also urged Family Dollar to more seriously consider rival dollar store Dollar General’s bid, which it called “clearly superior” to that of Dollar Tree.
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Family Dollar agreed in July to be acquired by Dollar Tree for $8.5 billion, partially due to its open approach to addressing antitrust concerns. Dollar General has offered more, twice, but has not been as open about addressing potential antitrust issues, which Family Dollar has said is the basis for its rejection.
Dive Insight:
A twice sweetened pot hasn’t moved Family Dollar’s board to consider a competing takeover offer from rival Dollar General, so far. There have been some ugly moments in this war, with Dollar General accusing Family Dollar CEO Howard Levin of acting in his own self-interest and ignoring that of the company.
Now activist investor Elliott Management is mixing things up, too, in these moves to edge Family Dollar toward Dollar General after all. Although some observers say the antitrust fears expressed by Family Dollar are well-founded, this move by Elliott Management could help swing things in Dollar General’s direction.