NEW YORK (TheStreet) -- Dollar General (DG) shares are up 1% to $66.75 in trading on Thursday after the discount retailer said that it is still committed to purchasing rival Family Dollar (FDO) and announced that it's in talks with the FTC over how many stores the company will have to divest as part of its bid for the company.
The New York Post reported yesterday that the company may have to give up as many as 4,000 stores to appease antitrust regulators, more than double the 1,500 stores it had originally expected to have to divest.
Family Dollar has already accepted a lower offer from Dollar Tree (DLTR) , though it announced yesterday that it was postponing a shareholders meeting to December 23 from its previously scheduled date of December 11.
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TheStreet Ratings team rates DOLLAR GENERAL CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR GENERAL CORP (DG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."