Family Dollar Adopts Poison Pill, Is It Enough?

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June 10 (Bloomberg) -- Kenneth Squire, founder and president of 13D Monitor, and Bloomberg's Jeffrey McCracken discuss Family Dollar adopting a poison pill after Carl Icahn acquired a 9.4 percent stake. They speak with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Of this.

They put in a pill.

Carl icahn still owns 10% of the company stop that is a big chunk.

Their other guys in there that own a lot.

Some of them have board seats.

They own 7%. he has a lot of power.

It is to his advantage that you have so many there's. there is smart money in there.

They can work together.

Or opposed index funds, there are a lot of hedge funds guys.

They would be more activist and put pressure on.

What is the goal for a company like this?

Is it a merger?

It lead you to the joke, how many activist is taken worse these new?

You have a variety of activist investors.

They will fight the sale right now.

Family dollar will fight.

There is a lot of purring support.

You indicated that there was money in synergy.

There was a report that indicated $1 billion will not bank of america was coming in close.

I was citing some information that had been given to me by people who are familiar with carl icon purchase.

There were estimates of $500 million.

Perhaps they were on the conservative side.

That is my point.

There are reports out that are even more bullish.

People looked on comparison shopping a family dollar versus dollar general always find that family dollars more expensive.

They are 10% more expensive than their rivals.

They are trying to lower prices.

They are not seen as the best place to shop.

Carl icahn is not focused on a merger with dollar general.

He thinks he sees the company and it is an industry that is growing.

One of the only parts of retail that could be growing.

Secondly, it is a company that is under arming.

Third, a corporate culture that needs to be changed.

He could come in and help change the corporate culture.

He could really improve performance.

Investors have refused pretty well.

Briefly, before i let you go, we are watching.

We are watching.

There is a deal.

What will happen?

Will it go through?

We ended phase one.

What was the whining and the dining.

Now we will move into a more slog.

They will try to win a proxy fight to get people on the board to convince allergan that they should accept the deal.

He is art he said that he will start a solicitation for shareholders to put directors on the board.

Stage one was more of them trying to get allergan to even come to the table.

They could not do that no matter how much they tried.

Step two will be to go directly to the shareholders.

We will be watching.

Thank you for joining me.

Just ahead, one of the stars of

This text has been automatically generated. It may not be 100% accurate.

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