Dollar General Raises Bid for Family Dollar and Signals Hostility

Dollar General raised its all-cash bid for Family Dollar Stores to $9.1 billion, or $80 a share, and signaled it may go hostile if the offer is rejected. The revised offer also includes a $500 million reverse breakup fee that Dollar General would pay Family Dollar if the deal fails due to antitrust concerns. Dollar General also offered to divest up to 1,500 stores, up from its prior offer to close 700 locations. In a letter to Family Dollar's board, Dollar General chief executive Rick Dreiling said the company may take its offer directly to Family Dollar's shareholders if the board refuses to engage with the company regarding its revised proposal.