Family Dollar rejected a takeover bid from dollar-store competitor Dollar General, saying it would be too hard for the deal to get approval from antitrust regulators. Family Dollar’s board said it supports its existing deal to be acquired by Dollar Tree.
Howard Levine, chairman and chief executive of Family Dollar Stores, said in a statement Thursday that the company’s board and advisers reviewed Dollar General’s offer and determined that it probably would not be completed with the proposed terms.
Rick Dreiling, the Dollar General chairman and chief executive, said in a statement that his company was disappointed in Family Dollar’s decision, and that it had done an extensive antitrust analysis that confirmed that its proposal could be completed. Dollar General said it was willing to share its analysis with Family Dollar and that it was still confident it could resolve regulatory concerns about competition.
The businesses of Family Dollar and Dollar General are more similar than Dollar Tree’s. The first two sell items at a variety of prices; at Dollar Tree, all items are $1.
On Monday, Dollar General — which is based in Goodlettsville, Tenn., and is the nation’s biggest dollar-store chain — offered about $8.95 billion, or $78.50 per share in cash, for Matthews, N.C.-based Family Dollar. Last month, Family Dollar agreed to an $8.5 billion deal with Chesapeake, Va.-based Dollar Tree.
— Associated Press
● A trade group for the nation’s big airlines predicted that air travel over the Labor Day weekend will rise 2 percent from the same holiday last year. The trade group Airlines for America said 14 million people are expected to fly on U.S. airlines during the seven days ending Sept. 2. The busiest day is expected to be the Friday of the holiday weekend. Separately, the auto club AAA forecast that 34.7 million Americans will travel at least 50 miles from home by car or plane over a five-day period ending on Labor Day. That would be a 1.3 percent increase over 2013.
● Average long-term U.S. mortgage rates declined this week, with the 30-year loan rate hitting its 52-week low. Mortgage company Freddie Mac said the nationwide average for a 30-year mortgage fell to 4.10 percent from 4.12 percent last week. The average for a 15-year mortgage, a popular choice for people who are refinancing, slipped to 3.23 percent from 3.24 percent.
● Honda said it will replace the front bumpers on about 12,000 Fits because the small car failed a key crash test. The automaker announced the free program at the same time the Insurance Institute for Highway Safety said a crash test of the 2015 Fit equipped with a redesigned bumper structure earned an “acceptable” rating on its small overlap crash test. The test simulates a wreck in which the front corner of the car hits another car or solid object at 40 mph. In the first test, the Fit received a “marginal” rating.
● Sprint unveiled a plan that gives subscribers access to unlimited mobile data for $60 a month — the industry’s cheapest unlimited data offering — as the carrier attempts to reverse the decline in its subscriber base. The announcement came hours after rival T-Mobile US launched a campaign to lure subscribers from other carriers. If an existing customer persuades a subscriber with another carrier to switch to T-Mobile, both will get upgraded to a free unlimited data plan for one year.
● Ford is recalling more than 160,000 vehicles in North America for two safety issues. The largest recall involves 159,395 Focus ST and Escape vehicles from the 2013 and 2014 model years. Ford says their engines could hesitate or stall because of a wiring problem. Ford also is recalling 616 Focus and C-Max cars made this month because their steering gears don’t have the proper number of ball bearings. That can potentially degrade the remaining ball bearings and lead to a loss of steering control.
● Sears Holdings said its loss widened significantly in the second quarter and announced that it might close additional stores on top of the 130 closures already underway this year. Hoffman Estates, Ill.-based Sears lost $573 million, or $5.39 per share, during the quarter that ended Aug. 2, nearly three times the loss of $194 million, or $1.83 per diluted share, during the same period last year. It is the ninth consecutive quarter that the once-mighty retailer has reported losses.
— From news services
● 10 a.m.: Federal Reserve Chair Janet L. Yellen speaks in Jackson, Wyo.