Like a bad Match.com date, Dollar General executives say they aren’t backing down in their attempt to persuade Family Dollar to love them and accept a $8.95 billion acquisition deal, The Charlotte Observer reports.
“In regards to our proposal to acquire Family Dollar, we remain firmly committed to the acquisition,” Dollar General CEO Rick Dreiling says in a statement.
That commitment was tested last week when North Carolina-based Family Dollar chose to stick with its earlier $8.5 billion merger deal with Dollar Tree.
Like most companies that feel the sting of rejection, Dreiling goes on to boast about how good Family Dollar could have it if only the company would ditch Dollar Tree and move-in with Dollar General.
“The financial benefits of our offer to Family Dollar shareholders are indisputable, and the proposed combination would unlock tremendous value for Dollar General shareholders,” he says.
That’s all well and good, but it doesn’t settle Family Dollar’s concerns that any kind of marriage between the two companies would be marred by antitrust issues.
Ah, but Dollar General is willing to give up 700 of the combined company’s 20,000 stores to win over antitrust regulators.
“We continue to believe the potential antitrust issues are manageable and that our transaction as proposed is both superior and achievable,” Dreiling said.
Officials with Dollar General didn’t disclose how they plan to officially woo Family Dollar. Though, I would enjoy coverage of Dreiling standing outside Family Dollar HQ blasting “In Your Eyes” from a raised boombox, a la Say Anything.
Alas, analysts tell the Observer it’s more likely that the company could increase its offer or go straight to shareholders and solicit votes to block the current Dollar Tree deal.
The dollar store wars began back in July when Chesapeake, VA-based Dollar Tree announced it has struck a deal to purchase Family Dollar. Not one to feel left out, Dollar General entered the race with an unsolicited bid just a week later.
Dollar General: We’re not giving up on Family Dollar deal [The Charlotte Observer]