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 "In my mind, it is time to be cautious about the U.S. stock
markets," Icahn said in a telephone interview. "While we are having
a great year, I am being very selective about the companies I
purchase."
U.S. stocks fell on Thursday as concerns about the financial health
of Portugal's top listed bank gave investors a reason to cash in
recent gains. The S&P 500 fell as much as 1 percent at one point
before sharply rebounding, to close down -0.41 percent at 1964.68.
[.N]
Icahn has been pressuring discount retailer Family Dollar Stores Inc
to sell itself. On Thursday, Family Dollar said its profit fell by a
third as it cleared inventory ahead of planned store closures and
competition intensified.
Icahn, Family Dollar's largest shareholder with a 9.4 percent stake,
wants the company to sell itself to rival Dollar General Corp to
help them cope with stiff competition from big-box retailers such as
Wal-Mart Stores Inc.
Icahn said: "The leadership, to say the least, is questionable at
Family Dollar and it's been that way for many years. Howard (Levine)
might be a nice guy but he is far from the right leader for Family
Dollar."
Icahn added: "We believe Family Dollar and Dollar General should
merge as they would make for perfect partners. It is obvious that
Family Dollar, especially in light of its record and the looming
competition on the horizon, could use a partner.
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"However, unfortunately, the announcement of Dollar General Chief
Executive Rick Dreiling's retirement is a setback to an activist
player like us that would like to accelerate this process but it
doesn't mean it is insurmountable on a long-term basis" with regards
to a possible merger between Dollar General and Family Dollar.
(Reporting By Jennifer Ablan; Editing by Meredith Mazzilli and David
Gregorio)
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