Tuesday, June 17, 2014

Family Dollar's Messiah

This article was originally published by Seeking Alpha on June 9, 2014 
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.