Carl Icahn is stepping up the pressure for a sale of discount retailer Family Dollar with a June 19 letter he sent to CEO Howard Levine -- and tweeted out -- two weeks after the company’s board adopted a poison pill with a trigger of 10%. Icahn had revealed a 9.4% stake in the company.
In the letter pressuring Levine regarding a sale, Icahn touts perfect timing for the move, citing favorable interest rates and the healthy stock market, and says consolidation in the discount retail space is “inevitable.”
In his letter, Icahn also noted that Levine had resisted his overture in a recent meeting and requested nominations to the board. Family Dollar has also released a statement in response noting that it is conducting a business review and continuing work on a turnaround.
Usually activist investors like Icahn have one major motivating factor when they attempt to shake up a company — profit. But complicating matters in this case is Family Dollar’s performance, which some observers say hasn't received adequate attention or response.