" ... We will not jeopardize the Dollar Tree deal for a transaction with Dollar General that has a high likelihood of not closing due to antitrust considerations," Ed Garden, an independent director on Family Dollar's board, said in a statement on Thursday.
Garden is also a co-founder and partner at Trian Fund Management LP, which was Family Dollar's second-largest shareholder as of July 27, with a 7.3 percent stake.
Dollar General, in a letter to Family Dollar's board late on Wednesday, questioned if Family Dollar Chief Executive Howard Levine was being driven by self-interest in his support of Dollar Tree's offer.
Levine said on Thursday that the letter "contained blatant mischaracterizations and did nothing to address the antitrust issues in Dollar General's proposal."
Dollar General, the largest U.S. dollar store operator, alleged that it had been led astray by Levine in talks on a potential buyout, notably during a meeting on June 19.