Nelson Peltz

Family Dollar has adopted a "poison pill" that could repel any potential hostile takeover attempt by activist investor Carl Icahn. But some analysts say a sale, merger or executive shakeup at the company looks increasingly likely. Icahn said Friday that he has bought 9.4 percent of the company. That means that more than 22 percent of the company's shares are controlled by activist investors, including John Paulson's hedge fund and Nelson Peltz, who tried to buy the company in 2011. 

Matthews, N.C. -- Family Dollar Stores reported Wednesday that net income for the quarter ended Feb. 26 rose 10% to $123.2 million, compared with $112.2 million a year earlier. Results were helped in part by improved traffic and higher transaction value. Revenue increased 8% to $2.26 billion, from $2.09 billion. Same-store sales rose 5.1%. Earlier in March, Family Dollar turned down an approximately $7 billion buyout offer from minority shareholder Nelson Peltz's Trian Fund. The company said it expects to open approximately 300 new stores in fiscal 2011 and close 80-100 existing locations.

MATTHEWS, N.C. – Family Dollar Stores Inc., which recently rebuffed an unsolicited buyout offer, reported that sales for the second quarter ended February 26 rose 8.3% to $2.09 billion. Comparable-store sales increased 5.1%, despite a negative impact in January from harsh weather. As a result, the company has raised its second-quarter earnings guidance to a range of 97 cents to 98 cents per diluted share from its January estimate of 92 cents to 97 cents per share. Earlier this month Family Dollar’s board of directors rejected a buyout offer of $55 to $60 per share from New York-based Trian

Following its restructuring program, Family Dollar Stores announced calculated actions to reinforce its operations by chopping more than 100 jobs. The move will permit Family Dollar to sustain its streamlined group, thus facilitating the company in making rapid decisions in a vivacious working and aggressive situation.

Family Dollar Stores said its board rejected a takeover bid by an activist investor, saying it "substantially undervalues the company." In February, Nelson Peltz's Trian Fund offered $55 to $60 per share for Family Dollar.

Discount retailer Family Dollar Stores received a bid from activist investor Nelson Peltz's firm to take the company private in a deal worth up to $7 billion. The Trian Fund is offering $55 to $60 per share for Family Dollar, according to a filing with the Securities and Exchange Commission.

More Blogs