Posted on 08/05/2014 11:55:56 AM PDT by Red Badger
NEW YORK (TheStreet) -- There is roughly a 50% chance that Dollar General (DG_) tries a competing bid for Family Dollar (FDO_) after the company agreed to an $8.5 billion merger with Dollar Tree (DLTR_) in late July, Bloomberg reported. If Dollar General does move forward on a flip of the coin bid for its primary competitor in discount retail, it will face three major hurdles.
Carl Icahn, once Family Dollar's largest shareholder and a major advocate of a Dollar General takeover, sold most of his shares in the company last week. Icahn pared his Family Dollar stake from nearly 10% to just 3.61% in the wake of Dollar Tree's offer. While Icahn couldn't immediately be reached for comment on Tuesday, he cast lukewarm support of the Dollar Tree offer on July 28. However, Icahn stated he was "hopeful" another bidder for Family Dollar would emerge.
(Excerpt) Read more at thestreet.com ...
Why?
Why?
Good question around here there are usually at least two of those stores per community sometime all three are represented. A merger would mean a lot of lost jobs here and Jobs of any sort are hard to come by around here.
Anti-Trust laws, what are those?
Added buying power to compete with Wal Mart................
That would give them some kind of monopoly wouldn’t it?
Who could ever hope to compete selling low-price stuff?
Those 99 cent stores maybe
because nobody else could hope to open a store, buy shelves and sell cheap imported stuff?
Not with the kind of regulations the government puts up more and more these days.
The fact is, today, the Government wants monopolies in all industries, makes them easier to control.
Can’t we all just agree to get along?
Icahn’s a corporate raider. Do not like this. Heck, I’m upset about any Dollar Tree merger possibly taking out DT’s “upscale” sibling store, Deals.
If they all do merge, all those stores will become one chain and then they’ll start removing store locations and jobs. Not good. If there’s one thing doing well out there in this crap economy it’s dollar stores.
The last thing we need is for anyone to create a monopoly on them and go up to a bare handful of “it’ll cost you several dollars” stores.
and sell cheap imported stuff?”
Our nearest Dollar Tree sells a lot of things made in the USA and, unlike some of the others I’ve been in, also has some frozen food products and fresh whole grain bread if you go on Tuesday. Yes, they do have a lot of things which are imported but you just have to pick and choose and read the labels.
The best thing they have are ginger snaps made in Abilene, Texas. Just yummy!
Walmart is already opening what I call Mini-Walmarts in various places, that resemble these dollar stores. There’s one in Gulf Breeze, between here and Pensacola, where a defunct grocery chain store used to be. They are small and carry fewer things, but the message is clear: They intend to muscle in on these Dollar Stores territory................
DG is better than the other two or WalMart. They have quite a bit of “Made in the USA” merchandise, and a lower percentage of made in China than most stores do.
It’s not illegal to HAVE a monopoly, it’s just illegal to MAINTAIN one by business practices that do not allow others to compete effectively...............
Sounds like he's getting out of the business................
Couple of checks to the right Congressmen will make all those troubles go away.
All 535 of them.............................
This line writes itself; “I’ll bet a dollar that Dollar gets it!”
Sorry, could not resist!
We had an S & S Kresge store at Sheridan Village in Peoria, IL where I grew up. It was the forerunner to K-Mart, IIRC. My mother had gone to school with Stan Kresge, she would tell us every time we went to the store. And there was a Woolworth’s downtown.
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