Billionaire investor Carl Icahn has sent a letter to the board of Family Dollar Stores, Inc. (FDO), asking the company to put itself up for sale “immediately”.
Icahn, who earlier this month disclosed that he’d amassed a 9.4% FDO stake, also asked that three directors that he’s proposing be part of a newly formed committee that would be tasked with immediately finding a buyer for the struggling retailer.
Icahn’s letter, which was disclosed in a filing with the SEC, comes following a dinner with Family Dollar CEO Howard Levine. Icahn wrote that although he “appreciated the cordial nature of the discussion at last night’s dinner, it was apparent that we have a strong difference of opinion as to the future of our company.”
In his letter Icahn also said that an “overwhelming majority of the company’s shareholders” would favor a sale.
“Family Dollar has consistently underperformed its peers on most, if not all, operating metrics,” Icahn wrote in the letter, “Now is a perfect time to sell, given the advantageous stock market and interest rate environment”.
Icahn warned he would approach shareholders directly if the company did not act immediately.
Following the filing, shares of Family Dollar rose as much as 4 percent to $70.90 in extended trading, after closing at $68.14 on Thursday, valuing the company at about $7.76 billion.
Risk Our Money Not Yours | Get 50% Off Any Account
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
Leave a Reply