This article
was originally
published by Seeking
Alpha on June 9, 2014
By Sarfaraz A. Khan
By Sarfaraz A. Khan
Carl Icahn has just become the biggest
shareholder of Family Dollar. Icahn’s arrival can start another round of
takeover speculations. Family Dollar has lagged behind its rivals and needs a
major overhaul.
Carl Icahn,
of Icahn Enterprises, has just become the biggest shareholder of Family Dollar
by purchasing a 9.39% stake in the company. The struggling dollar-store chain
operator has been eyeing a turnaround following years of underperformance.
Icahn: The Biggest Shareholder of
Family Dollar
According to
a recent SEC filing, Carl Icahn has declared that he, along with his
associates, have purchased nearly 10.7 million shares of Family Dollar. The
activist investor, who is currently facing an SEC probe over potential insider
trading, has now become the biggest shareholder of Family Dollar, ahead of the
company's head Howard Levine who owns 8.18% stake.
Carl Icahn
also revealed that he could go after a position on Family Dollar's board. If
Icahn gets a representation on the company's board, then he will be joining
another activist investor, Nelson Peltz, whose representative from his firm
Trian Fund Management sits on the company's board.
Nelson Peltz
is also a major shareholder and owns 7.4% of Family Dollar.
Takeover Speculations
Nearly three
years ago, Peltz made an unsuccessful bid for the dollar store, in an effort to
attract other parties who could join Peltz in taking over Family Dollar. Although
nobody showed any interest, since then, Family Dollar has operated in the midst
of takeover speculations.
Earlier this year,
Credit Suisse's Michael Exstein suggested … read full
article at Seeking
Alpha.
