US investor Nelson Peltz has backed away from an aggressive takeover of Family Dollar Stores after a deal with the discount retailer.
Peltz, who had tried to buy the company through his Trian Group hedge fund, has agreed to not seek “economic ownership” of more than 9.9% of Family Dollar stock for a specified period of time.
Go deeper with GlobalData
In return Edward Garden, the chief investment officer of Trian, will get a place on the discount retailers’ board, as detailed in a regulatory filing last week.
The filing said Trian would “work constructively with [Family Dollar’s] management and the board to identify and pursue strategies to enhance shareholder value”.
In March, Family Dollar’s board unanimously rejected a takeover approach from Trian, claiming it “substantially” undervalued the company.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
