Activist investor Carl Icahn has taken a 9.39% stake in Family Dollar (FDO) per a filing with the SEC. After disclosing his stake, shares jumped over 14%.
It seems Icahn's plan here is to get the company sold. While private equity firms or Dollar General (DG) could be logical suitors, Family Dollar announced that they've adopted a shareholder rights plan.
Icahn is looking to talk to FDO's board so we'll see what comes of his activism. While dollar stores have been popular plays among hedge funds, many long/short managers have preferred shares of DG (such as Lone Pine, Tiger Global, Glenview, Senator, Corvex and more).
That said, Family Dollar's largest shareholder list as of the end of Q1 included Nelson Peltz's Trian Fund as well as Paulson & Co.
Wednesday, June 11, 2014
Carl Icahn Takes Family Dollar Stake, Company Adopts Poison Pill
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