Carl Icahn sells stake in discounter Family Dollar and earns $200m

Joseph Millis
Carl Icahn has urged Family Dollar to sell up
Activist investor Carl Icahn yesterday sold his stake in deep discounter Family Dollar, earning $200m (£121m) in the process, Reuters reported, citing sources familiar with the issue.

The sale comes after Icahn pushed Family Dollar’s man­age­ment into putting it up for sale, igniting a bidding war.

In July, rival Dollar Tree offered to pay $8.5bn (£5.15bn) for Family Dollar, excluding debt, which the company had accepted at the time.

But then Dollar General put in a competing bid of $9bn, which the company rejected citing antitrust concerns.

On Tuesday, Dollar General upped its bid to $9.1bn.

Icahn became Family Dollar’s largest shareholder with a 9.4 per cent stake. He immediately started agitating for change at the company, including attacking chief executive Howard Levine.

Related articles