Join The Discussion

 

TCU rises 20 places on influential U.S. News & World Report ranking

St. John's College in Annapolis, Md., has long disdained the rankings game. The liberal arts school, which focuses on the great works of Western civilization, was known for not responding to requests from U.S. News & World Report for information that the magazine uses to sort the nation's colleges.

read more >

Fort Worth-based Woodmont plans $80M Hard Rock Hotel retail center

Woodmont Outlets of Fort Worth, an affiliate of The Woodmont Co., has partnered with Cherokee Nation Businesses for a proposed upscale retail development at Hard Rock Hotel & Casino Tulsa.

read more >

Barnett still packs economic punch, study finds

Despite reduced drilling and unstable gas prices, Fort Worth continues reaping the rewards of the Barnett Shale, according to a newly released study by The Perryman Group.7

read more >

Time to make more Do-Nuts in DFW

Shipley Do-Nuts has signed a development agreement with Adkins Development Corp. to accelerate expansion in the Dallas-Fort Worth market.

read more >

Leo's Foods to shutter Fort Worth plant, lay off 84

In a filing with the Texas Workforce Commission, Leo’s Foods will begin terminating employees over a 14 day period beginning Oct. 10.

read more >

Family Dollar investor sues to block Dollar Tree takeover

 

Jef Feeley
(c) 2014, Bloomberg News.

WILMINGTON, Del. – A Family Dollar Stores Inc. shareholder contends that directors shortchanged investors in the discount chain by agreeing to an $8.5 billion takeover by rival Dollar Tree Inc. in a deal that discourages other bidders.

Dollar Tree's $74.50-a-share cash-and-stock offer for the 8,000-store chain undervalues Matthews, North Carolina-based Family Dollar and directors failed to properly shop around for the highest price, Shiva Stein, a Family Dollar investor, said in a suit filed Thursday in Delaware Chancery Court.

"The proposed transaction offers unfair and inadequate consideration that does not constitute a maximization of stockholder value," Stein said. She's seeking to block the deal or recover damages for herself and other investors if it goes through.

The suit may be the first shareholder challenge to the deal, which was prompted by billionaire investors Carl Icahn and Nelson Peltz, who acquired major stakes in Family Dollar. Peltz made an unsolicited bid for the chain in 2011 in an unsuccessful attempt to attract other suitors.

Bryn Winburn, a Family Dollar spokeswoman, didn't immediately respond to phone calls seeking comment on Stein's suit.

Family Dollar Chief Executive Officer Howard Levine agreed to sell the company his father founded after years of struggling to compete with other discount chains, including Dollar Tree, Wal-Mart Stores Inc. and current dollar-store market leader, Dollar General Corp.

Stein contended in the complaint that analysts have said Family Dollar shares are worth as much as $79 apiece and that Dollar Tree's offer provides only $59.60 in cash along with stock to bring the final value of the bid to $74.50.

Family Dollar's directors also wrongfully allowed Chesapeake, Virginia-based Dollar Tree to structure the deal in a way to discourage other bidders and put in place a $305 million termination fee, Stein said in her suit.

The new Dollar Tree, which plans to keep operating separate chains, would have more than 13,000 locations across the U.S. and Canada, with 145,000 employees. Dollar General and Wal-Mart each have about 11,000 stores.

< back

Email   email
hide
Arena
What do you think of the new plans for a new Will Rogers arena and changes at the Convention Center?