By Michael Calia
Trian Fund Management LP, the firm controlled by activist
investor Nelson Peltz, trimmed its stake in Family Dollar Stores
Inc., days after the discount chain's shareholders approved a deal
to be acquired by Dollar Tree Inc.
Trian, which had supported that deal, said in a regulatory
filing that it cut its stake to little more than 2% after
previously holding 7% of Family Dollar.
Family Dollar shareholders approved the $8.7 billion deal with
Dollar Tree last week after several delays prompted by Dollar
General Inc.'s larger bid. However, Family Dollar had rejected
Dollar General's $9.1 billion proposal over concerns that
regulators would force the discount chain to sell more locations
than Dollar General estimated.
Dollar Tree, likewise, had said it would need to divest a much
smaller amount of stores to gain approval from the Federal Trade
Commission.
Trian, which has an executive on Family Dollar's board,
supported the Dollar Tree deal, cutting against the grain as many,
including activist investor Elliott Management Corp., had thought
Dollar General was a more logical suitor.
Dollar Tree made its offer in July. Dollar General, surprised by
the agreement as it had been exploring a deal for Family Dollar for
several months, responded with an unsolicited offer weeks later,
setting off months of posturing and regulatory wrangling.
Write to Michael Calia at michael.calia@wsj.com
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