Inside This Issue - News
Dollar Store stake hiked by Ackman
June 20th, 2011
NEW YORK – Hedge fund manager William Ackman has increased his ownership of Family Dollar Stores Inc. by about 5 million shares, making his Pershing Square Capital Management the largest shareholder of the discount retailer.
The action takes his stake to 10.9 million shares (8.9%) of Family Dollar. The regulatory filing for the increase notes that part of the holding is tied to place options for selling stock in the future at a specified price at a preset point. Ackman previously owned about a 4.7% investment.
Ackman’s stock disclosure in Family Dollar was made on a Securities and Exchange Commission form that is maintained for those without activist intentions. Family Dollar had rejected a takeover attempt by Nelson Peltz and his Trian hedge fund. Peltz, with about a 6.5% stake, had been the largest holder of Family Dollar.
The Trian bid, made in February, was based on acquiring the remainder of Family Dollar for $55 to $60 a share.
Trian representatives declined to comment on the stake increase attained by Ackman.
Ackman previously disclosed his interest in the retailer and indicated his belief that Family Dollar is poised for an increase in its share price based on the prospect of selling to a strategic buyer or a private equity firm. Pershing Square Capital Management is known for activist forays into Target Corp. and other companies.
Earlier this year, 99¢ Only Stores received a bid to go private from Leonard Green & Partners LP. That company continues to evaluate the offer.