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Stock Market & Financial Investment News

News Breaks
June 9, 2014
10:18 EDTDG, FDO, DLTRDollar stores rally after Icahn takes Family Dollar stake
Shares of Family Dollar (FDO) are climbing after well-known activist investor Carl Icahn disclosed that he had obtained a significant stake in the company and Fox Business reported that Icahn could push for a merger between Family Dollar and peer Dollar General (DG). WHAT'S NEW: Carl Icahn disclosed in an SEC filing late Friday that he had obtained a 9.39% stake in discount retailer Family Dollar. Icahn stated that he believes the company's stock is undervalued and added that he sees great long-term potential in the sector. Meanwhile, Icahn told Fox Business that he would consider trying to get Family Dollar to merge with another company in the sector, Dollar General. For its part, Family Dollar said that it was open to holding dialogues with all of its shareholders, but then adopted a one-year shareholder rights plan meant to prevent anyone from gaining control of the company without paying a premium. ANALYST REACTION: In a note to investors earlier today, Jefferies analyst Daniel Binder upgraded Family Dollar and Dollar General to Buy from Hold. The analyst upgraded the stocks based on his belief that the companies could merge. A merger could allow the companies to generate large cost savings, according to Binder. He set a $79 price target on Family Dollar and a $75 price target on Dollar General. Significantly less optimistic about the potential for a merger was FBR Capital analyst Dutch Fox. Dollar General doesn't want to merge with Family Dollar and such a deal won't happen anytime soon, the analyst contended. However, both companies could launch share repurchase plans, he believes. Fox kept a Market Perform rating on Family Dollar and an Outperform rating on Dollar General. He recommended that investors respond to the news by being long Dollar General in the short-term. PRICE ACTION: In early trading, Family Dollar jumped 15% to $69.50, Dollar General surged 11% to $64.25, and Dollar Tree (DLTR), another retailer in the space, rose 2% to $56.35.
News For FDO;DG;DLTR From The Last 14 Days
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April 9, 2015
09:18 EDTFDO, DGBofA/Merrill retail analysts hold an analyst/industry conference call
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April 8, 2015
08:09 EDTFDO, DLTRFamily Dollar says sales trends in March 'rebounded nicely'
"We continue to see tangible benefits from the investments we have made to strengthen our value proposition for customers. Our comparable store sales and customer traffic trends are improving, and we are beginning to see stabilization in key categories. While our trends in late-February were adversely impacted by severe winter weather, our sales trends in March rebounded nicely, reflecting both improved traffic trends and the benefit of an earlier Easter,” said Howard R. Levine, Chairman and CEO. “We are excited about the pending merger with Dollar Tree, and our teams are working to ensure a successful integration.”
08:05 EDTDLTR, FDOFamily Dollar says not providing guidance
On January 22, Family Dollar (FDO) stockholders adopted the merger agreement with Dollar Tree (DLTR). The completion of the merger remains subject to Federal Trade Commission clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other closing conditions. Dollar Tree, with support from Family Dollar, is continuing to work with the FTC to obtain clearance under the HSR Act, including in connection with arranging for divestitures. Dollar Tree has informed Family Dollar that Dollar Tree intends to close the merger by the end of May 2015. In light of the pending transaction, the company has not provided earnings guidance for fiscal 2015 and will not hold a conference call to discuss its second quarter results.
08:05 EDTFDOFamily Dollar reports March SSS up 3.7%
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08:04 EDTFDOFamily Dollar reports Q2 adjusted EPS 74c, consensus 73c
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05:49 EDTDGDollar General price target raised to $85 from $80 at Deutsche Bank
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April 7, 2015
16:38 EDTDLTR, FDODollar Tree discloses update on FTC review process of Family Dollar acquisition
Dollar Tree (DLTR) disclosed in a regulatory filing, the following update on the Federal Trade Commission’s review process of the company’s pending acquisition of Family Dollar Stores (FDO). As of April 1, the FTC’s staff has substantially completed its review and identified approximately 340 stores for divestiture, representing approximately $47.4M of operating income. The company expects that all or almost all of the stores that will be divested will be Family Dollar stores. The company continues to make progress with divestiture buyers and has received multiple indications of interest from buyers, each of whom intend to operate these divested locations as dollar stores to address the FTC's concerns. The company is working to finalize divestiture agreements with the selected bidders in April 2015 and in parallel to secure FTC approval. The company intends to close the proposed merger in May, but this timing is subject to certain factors beyond the company’s control, including FTC approval.
15:30 EDTFDONotable companies reporting before tomorrow's open
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