Nelson Peltz Makes $55-$60 Run At Family Dollar
Posted on 17 February, 2011 | No Comments
Nelson Peltz disclosed he’s offering to buy discount retailer Family Dollar Stores for $55 to $60 a share in cash.
Peltz said last year that he believed Family Dollar’s shares were undervalued, and he said he would discuss with the company ways to improve operating performance.
Family Dollar shares ended the regular trading session at $43.96 a share.
At $60 a share, a buyout would cost Peltz $7.6 billion, based on Family Dollar’s recent share count of 126.4 million shares.
Peltz said in a regulatory filing that he also offered Howard Levine, the Family Dollar CEO, an opportunity to participate in a company buyout.
Peltz’s investment firm, Trian, “also advised Mr. Levine that in their view, the ultimate decision of whether the Issuer should be sold should be determined by the Issuer’s shareholders,” according to the regulatory filing.
Trian owns nearly 8% of Family Dollar’s shares, according to today’s SEC filing.
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