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 Shares of Family Dollar, struggling under declining sales, rose as
much as 12 percent in extended trade on Friday.
At 10.69 million shares, Icahn becomes the largest shareholder in
Family Dollar. Chief Executive Officer Howard Levine disclosed a
8.18 percent stake with 9.31 million shares last November, according
to Thomson Reuters data.
Activist investor Nelson Peltz-led Trian Partners is the
third-largest shareholder with a 7.35 percent stake and 8.37 million
shares in Family Dollar, according to a March 31 filing.
In 2011, Family Dollar rejected Peltz's bid to buy the company for
at least $7 billion.
Icahn, known for taking big stakes in companies and pushing for
management change, said he plans to talk to the low-cost store
operator about strategies, which may include the exploration of
"strategic alternatives". (http://r.reuters.com/nev89v)
"Disclosed a 9 percent position in Family Dollar today. Hope to
continue our streak of value enhancement," Icahn posted on Twitter.
Family Dollar said its board and management team were open to
dialogue with all shareholders.
"As previously announced, we are taking steps to strengthen our
value proposition, increase operational efficiencies and improve
financial performance," the company said in a statement on Friday
evening.
Icahn told FOX Business he would consider pushing Family Dollar for
a merger with rival Dollar General Corp.
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Dollar General said it did not comment on market speculation.
Family Dollar, which has trailed rivals such as Tennessee-based
Dollar General and Dollar Tree Inc, said in April it would close 370
stores and slow its expansion of new stores.
The North Carolina, Matthews-based retailer, which caters to
lower-income shoppers, many of whom live paycheck to paycheck, has
also slashed prices in an effort to win customers.
Family Dollar shares rose 10.1 percent to $66.60 in extended trade.
They closed at $60.53 on the New York Stock Exchange on Friday and
are down 6.8 percent year-to-date.
(Reporting by Shailaja Sharma and Sampad Patnaik in Bangalore;
Editing by Maju Samuel, Leslie Adler and Bernard Orr)
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