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Family Dollar Fate May Hinge on Decision by Billionaire Paulson

Dollar General Corp.’s $9.1 billion hostile bid for Family Dollar Stores Inc. may hinge on winning over an investor in both companies: Paulson & Co.

The hedge fund founded by billionaire John Paulson is the third-largest holder of Family Dollar stock, with 7 percent of the shares outstanding, and the biggest investor that hasn’t yet publicly taken a stance on the three-way takeover battle. Family Dollar’s two largest shareholders, which control a combined 15 percent of the company, are backing an $8.5 billion bid from Dollar Tree Inc., saying the lower offer has a better shot of being approved by antitrust regulators.