SAN DIEGO, Aug. 13, 2014 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that an investor, who currently holds Family Dollar Stores, Inc. (FDO) shares, filed a lawsuit in effort to halt the proposed takeover of Family Dollar Stores, Inc. by Dollar Tree, Inc. for a value of $74.50 per share.
Investors, who purchased shares of Family Dollar Stores, Inc. (FDO) prior to July 28, 2014 and currently hold any of those FDO shares, have certain options and should contact the Shareholders Foundation, Inc. at firstname.lastname@example.org or call +1 (858) 779-1554.
On July 28, 2014, Dollar Tree, Inc. (DLTR) and Family Dollar Stores, Inc. (FDO), announced that they have entered into a merger agreement under which Dollar Tree will acquire Family Dollar in a cash and stock transaction. Under the terms of the transaction, Family Dollar shareholders will receive $74.50 for each share they own, comprised of $59.60 in cash and $14.90 in Dollar Tree stock.
However, the plaintiff claims that the takeover undervalues Family Dollar Stores, Inc. Indeed, at least one analyst has set the high target price for FDO shares at $79 per share and FDO shares jumped following the takeover news in the open market to as high as $79.93 per share on August 5, 2014.
In addition, the plaintiff alleges that the process is also unfair to FDO investors. In fact, Howard R. Levine and Trian Fund Management, L.P. and funds managed by it, which collectively own approximately 16% of the outstanding stock of Family Dollar, have already entered into voting agreements in support of the merger.
Those who currently are investors in Family Dollar Stores, Inc. (FDO) shares and purchased any of those FDO shares prior to the announcement have certain options and should contact the Shareholders Foundation.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT: Shareholders Foundation, Inc. Trevor Allen +1 (858) 779-1554 email@example.com 3111 Camino Del Rio North Suite 423 San Diego, CA 92108
Source:Shareholders Foundation, Inc.