Two months after rejecting a takeover bid from billionaire investor Nelson Peltz, another influential investor is discussing the Matthews-based company's allure as an acquisition.
Bill Ackman, of Pershing Square Capital, gave a presentation yesterday at an investment conference called "All in the Family," touting the likelihood for a takeover of Family Dollar in the near future. Family Dollar, one of the Charlotte region's biggest homegrown success stories, could be worth a lot more per share than its current value, Ackman said, and possible buyers could include rivals like Dollar General or other leveraged buyout firms.
Ackman, also a well-known activist investor, also said his firm is buying Family Dollar shares. But he said his investment will only be a passive stake, and he won't pressure management for changes.
The mention of Family Dollar as a takeover target could reignite speculation that the nearly 7,000-store chain could be bought sometime soon. But the company still has a so-called "poison pill" in place, discouraging any hostile takeover attempts, so any buyer would likely have to approach with a significantly higher offer than Peltz's tender of $55-$60 per share.