Claudia Higgins Discusses How Antitrust May Affect Dollar Store Merger Negotiations in Reuters
As seen in Reuters’ “Family Dollar Spurns Dollar General Bid on Antitrust Concerns”
August 21, 2014
Reuters reports that Family Dollar Stores Inc turned down a buyout offer of $9 billion from Dollar General Corp, claiming that such a large merger would be unlikely to be approved due to antitrust concerns. Instead, Family Dollar is expected to accept a $8.5 billion bid from Dollar Tree Inc, which the article suggests would allow Family Dollar’s CEO to keep his current job.
According to Kaye Scholer Antitrust Partner Claudia Higgins, Family Dollar’s rejection “may be a negotiating tactic for [Family Dollar] to get a better price,” she said, adding, “Antitrust is very often a part of the negotiating picture.”