Dollar General Takes Buyout Offer Directly To Family Dollar Shareholders

Dollar General has not said whether Family Dollar locations would be rebranded under a buyout. Credit: Dustin Peck Photography via Family Dollar

A bidding war over the Family Dollar discount chain has officially turned hostile. After being twice rejected, Goodlettsville-based Dollar General is taking its offer directly to Family Dollar shareholders.

Dollar General had already threatened to make an end run around Family Dollar’s board of directors. And now CEO Rick Dreiling says in a statement that he’s giving shareholders “a voice in the process.” He’s urging them to take his roughly $10 billion cash offer, saying it would provide “certain liquidity” compared to a smaller deal struck with Dollar Tree.

Family Dollar’s board has expressed concerns that a deal with Dollar General would run into too many anti-trust issues. The combined company would have nearly 20,000 stores in almost every state.