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.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• How to protect a company from a hostile takeover

Keywords

Family Dollar, Dollar Tree, Dollar General, Acquisition, Hostile, Shareholder, right plan, Carl Icahn, Benefits