retail news in context, analysis with attitude

Reuters reports that Family Dollar has rejected Dollar General's "sweetened" bid to buy it for $9.1 billion, saying that the offer did not sufficiently address concerns that antitrust regulators might torpedo a deal.

The story suggests that the rejection increases the likelihood that Dollar General could "go hostile" with its efforts to buy Family Dollar, which has said that it would rather ago through with the $8.5 billion bid that it has accepted from Dollar Tree.

Dollar General said last week, when increasing its offer for Family Dollar, that it was pledging to pay a reverse termination fee of $500 million of their merger falls apart because of antitrust issues, and said it would be willing to more than double the number of stores it would be willing to divest because of antitrust issues to 1,500.
KC's View: