US: Family Dollar rejects Trian bid
The board of US discount retailer Family Dollar Stores has unanimously rejected a takeover approach from Trian Group, the fund run by activist US investor Nelson Peltz.
In an announcement today (3 March) Family Dollar's board insisted that Trian's unsolicited takeover offer "substantially undervalues" the company and suggested that a sale is not in the best interests of shareholders. Instead, the board concluded that the continued implementation of Family Dollar's "strategic plan" affords the best prospects for value creation.
"In September 2010, we shared with investors our strategic plan to accelerate revenue growth, expand operating margins and optimise our capital structure," said chairman and CEO Howard Levine. "The results from this fiscal year are a positive reflection of this plan."
Family Dollar has accelerated new store openings, launched a store renovation programme and invested to improve operational capabilities, Levine emphasised. Over the past year Family Dollar's quarterly dividend has risen by 16% to US$0.18 per share and the board has approved a $750m share repurchase programme, he added.
"Family Dollar is executing effectively on its business plan and has a proven record of delivering superior results for shareholders. We continue to believe that our efforts to serve our customers better while improving our operational capabilities and returning excess capital to shareholders will deliver strong financial returns in fiscal 2011 and beyond," Levine insisted.
Activist investor William Ackman and his hedge fund, Pershing Square Capital Management, have increased its stake in US discounter Family Dollar Stores....
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Quorn CEO sets out stall for 2017 - interview
- How Tyson's new CEO plans to grow the meat group
- Mondelez goes beyond certified cocoa - analysis
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti