Hedge fund seeks board seats at Family Dollar

AP News
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Posted: Oct 17, 2014 5:35 PM

Hedge fund Elliott Management is seeking seats on Family Dollar's board, saying it wants to ensure the retailer reconsiders a buyout bid from rival Dollar General.

Family Dollar Stores Inc. accepted an $8.5 billion cash and stock buyout offer from another discounter, Dollar Tree, in July. But Dollar General also launched a takeover effort.

Dollar General decided to take its $9.1 billion cash bid directly to shareholders after repeated rejections by Family Dollar, which cited concerns over possible antitrust issues.

Elliott Management said Friday that Dollar General has a superior offer and it wants to ensure it has an even playing field. The hedge fund says it also wants to protect its 4.9 percent stake in the company.