NEW YORK (The Deal) -- Family Dollar Stores (FDO) has rejected Dollar General's (DG - Get Report) $78.50 per share offer citing antitrust concerns, it said on Thursday, while reaffirming its support for a merger with Dollar Tree (DLTR - Get Report) .
"Our Board of Directors, with the assistance of outside advisors and consultants, has been carefully analyzing the antitrust issues in a potential combination with Dollar General since the beginning of this year, as detailed in the Company's preliminary proxy statement that was filed by Dollar Tree with the SEC on August 11. Our Board reviewed, with our advisors, all aspects of Dollar General's proposal and unanimously concluded that it is not reasonably likely to be completed on the terms proposed. Accordingly, our Board rejects Dollar General's proposal and reaffirms its support for the pending merger with Dollar Tree," Howard Levine, chairman and chief executive of Family Dollar, said in a statement.
Watch the video below for more on why Family Dollar rejected Dollar General's take over bid:
Nonetheless, Family Dollar said it would be willing to commence negotiations and allow due diligence with Dollar General, but only if its antitrust concerns could be addressed.
Trian Fund Management, a Family Dollar shareholder, continued to throw its support behind a Family Dollar combination with Dollar Tree.