Starboard buys stake in Dollar Tree, seeks sale of Family Dollar: WSJ

A Dollar Tree store in Miami
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Activist investor Starboard Value has acquired a stake in discount store operator Dollar Tree and is asking the company to sell its Family Dollar business, The Wall Street Journal reported on Sunday.

Starboard, which has taken a 1.7 percent stake worth about $370 million in the retailer, is seeking majority control of the board and is also pushing for Dollar Tree to tweak its pricing model, the paper reported, citing sources.

The hedge fund nominated seven directors to Dollar Tree's 12-member board, ahead of the nomination deadline last week, WSJ said.

Dollar Tree has been struggling to turn around its Family Dollar business since its acquisition in 2015.

Starboard and Dollar Tree did not immediately respond to Reuters' request for comment outside regular business hours.