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Dollar Tree’s Acquisition of Family Dollar Stores
Abstract
The case study discusses an alternative takeover defense strategy. In 2014, Family Dollar approved a one-year shareholder right plan with a trigger of a 10% holding of its stock to prevent a hostile takeover of the company by an individual or a group. The case study also discusses the synergies of a merger between Dollar Tree and Family Dollar and the criticisms of the merger. The case study provides a platform for students to discuss the pre-offer and post-offer takeover defense strategy. |
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Issues
The case is structured to achieve the following teaching objectives:
- How to protect a company from a hostile takeover.
| Contents |
| INTRODUCTION |
| BACKGROUND |
| ONE-YEAR SHAREHOLDER RIGHTS PLAN |
| PROPOSED ACQUISITION |
| EXPECTED BENEFITS OF MERGER |
| CRITICISM |
| EXHIBIT |
Keywords
Family Dollar, Dollar Tree, Dollar General, Acquisition, Hostile, Shareholder, right plan, Carl Icahn, Benefits
