(GOODLETTSVILLE, Tenn.) — A bidding war is heating up for the struggling discount retailer Family Dollar, and big bucks are involved.
Dollar General has made a proposal to acquire Family Dollar for $78.50 per share, or approximately $9.7 billion. The all-cash bid is more generous than a rival offer made last month by Dollar Tree, worth $74.50 a share.
“For Family Dollar shareholders, our proposal is financially superior to the current transaction agreement with Dollar Tree and would provide Family Dollar shareholders with a substantial premium and immediate liquidity for their shares,” Dollar General CEO Rick Dreiling said in a statement Monday.
Neither Dollar Tree nor Family Dollar has commented on the new bid.
Dollar General’s share price rose 9 percent Monday morning. A merger could lead to more intense competition for Walmart, which also serves lower and middle-income consumers.
Copyright 2014 ABC News Radio
John Clyde, KSL.com
Selena Larson, CNN
Nate Eaton, EastIdahoNews.com
Kathryn Vasel, CNN