Family Dollar adopts shareholder rights plan on Icahn stake

Activist investor now the retailer’s largest shareholder

Matthews, N.C. – Family Dollar Stores adopted a one-year shareholder rights plan, known as a poison pill, which has a 10% beneficial ownership threshold.

The plan is intended to protect shareholders against a person or group gaining control of the company by open market accumulation without paying a premium for all shares

The move comes two days after activist investor Carl Icahn reported a 9.39% stake in the company on Friday, making him its largest shareholder.

The plan applies to all current and future stockholders, according to a statement from the retailer. It “is not designed to prevent an offer to acquire the company, but rather to allow the board adequate time to consider any and all alternatives,” it said.

Home & Textiles Today Staff | News & Commentary

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See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!