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Dollar Tree’s bid back for Family Dollar
Shifting their previous position, two powerful proxy advisory companies counseled Family Dollar Stores Inc investors to vote for the acquisition of the retailer by Dollar Tree Inc, saying the deal offered more conviction of closing.
Institutional Shareholder Services said on Wednesday Dollar Tree’s suggestion was in the very best interest of investors and was likely to close as it faces fewer antitrust hurdles.
The U.S. Federal Trade Commission is scrutinizing both offers over stresses that a deal could inflate costs at discount stores.
“This is actually the time where antitrust regulators (Dollar General) have to reveal their cards … or else Dollar Tree will really win the prize,” Rahul Sharma, managing director of investment advisory business Neev Capital, told Reuters.
Additional adjournments risked Dollar Tree walking away and there were no “material developments” in the possibility of Dollar General’s bid getting antitrust acceptance, ISS said.
Dollar Tree said in a letter to Family Dollar last week that it was reluctant to consent to additional adjournments of the stockholder vote, which is currently scheduled for Jan. 22.
Proxy advisory firm urged shareholders vote for a merger with Dollar Tree.
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