Budget-friendly retail giant Family Dollar has reportedly adopted a so-called poison pill to protect itself against hostile takeovers as activist investor Carl Icahn considers pushing for a merger with rival Dollar General.
Reports say Family Dollar adopted the plan, which allows the company to dilute shares of investors if they exceed a certain threshold of ownership. The plan was implemented as Icahn, who announced a 9.39 percent ownership in Family Dollar late last week, considers pushing for a merger with top rival Dollar General.
But the “poison pill” only “puts a damper” on what could be a friendly merger dialogue between the two retailers, Icahn said Monday, adding that the company was already planning such a discussion.
According to reports, analysts suggest Dollar General could seek to acquire its competitor as it struggles to compete against Wal-Mart, Target and other low-income retail destinations.
Full content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI