Peltz makes buy out offer for Family Dollar

Trian, the investment group headed by Nelson Peltz, has made an offer to acquire Family Dollar, the US neighbourhood discount store chain, that values the retailer at up to $7bn.

News of the cash offer of $55 to $60 per share sent the company’s shares soaring in after-hours trading in New York. The shares were trading at $55.35, up 25.9 per cent.

In a regulatory filing, Trian said it had contacted Howard Levine, chairman and chief executive of Family Dollar, on Tuesday and advised him that it beneficially controlled 8 per cent of the retailer’s shares, which it believed made Trian the company’s largest shareholder.

Trian said it had also “offered Mr Levine the opportunity to participate as an investor” in the proposed buy out, which follows a series of smaller deals for US speciality retailers including Jo Ann Stores, Gymboree and J Crew.

Read Full Article from Financial Times

- Posted: 2011-02-15 21:27:34

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