Dollar General Offers Major Antitrust Concessions as It Lifts Bid for Family Dollar

Updated from 7:29 a.m. EDT with comments from Family Dollar, Dollar General and analysts.  

NEW YORK (TheStreet) -- Dollar General (DG)  raised the stakes in its competing bid for Family Dollar (FDO) , offering $80 a share in cash and major antitrust concessions that may force the two discount retailers to the negotiating table after a one-month standoff.

Dollar General said Tuesday it would increase its takeover bid for Family Dollar, while also offering two major concessions: a $500 million reverse termination fee in the event antitrust regulators nix the deal, and a promise to divest up to 1,500 stores if the Federal Trade Commission orders the company to do so.

Watch the video below to find out why TheStreet's Jim Cramer says he'd rather own shares of Dollar Tree than Family Dollar:


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That higher bid, combined with significant antitrust concessions, may force Family Dollar to the negotiating table. Family Dollar has so far rejected Dollar General's attempts at a merger, instead recommending investors support a $74.50 a share cash-and-stock offer from Dollar Tree (DLTR) , which comes with lower antitrust hurdles and has the support of CEO Howard Levine and hedge fund Trian Management, who own a combined 16% of the company's outstanding shares.

Read More: The Ball is in Dollar General’s Court

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