Exclusive: Icahn - Family Dollar poison pill puts damper on 'friendly dialogue'

Mon Jun 9, 2014 3:06pm EDT

Billionaire activist investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York in this February 11, 2014 file photo.  REUTERS/Brendan McDermid

Billionaire activist investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York in this February 11, 2014 file photo.

Credit: Reuters/Brendan McDermid

(Reuters) - Billionaire shareholder activist Carl Icahn told Reuters on Monday that the Family Dollar Stores Inc (FDO.N) poison pill is a "quintessential example" of attorneys "simply earning fees."

Icahn said the poison pill also "puts a damper" on prospects for a "friendly dialogue" with Family Dollar executives.

Family Dollar adopted a poison pill to buy time to consider any possible deal that Icahn could push for after becoming its largest shareholder.

Icahn said on Friday in a filing that he had a 9.39 percent stake in Family Dollar and said he was considering to push the $6.89 billion company for a merger with rival Dollar General Corp (DG.N).

"The poison pill especially in this case is a quintessential example of attorneys simply earning fees - how does it possibly help shareholders by putting a pill in?" Icahn said.

"How does it possibly matter if I own 10 percent or 15 percent of a company? All it does is it makes it more difficult to have a friendly dialogue, which we already are planning to have. It puts a damper, at least from my perspective, for the friendly dialogue."

(Reporting by Jennifer Ablan; Editing by Chizu Nomiyama and Richard Chang)

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Comments (1)
DHites wrote:
How hypocritical. The “poison pill” is just a way for lawyers to earn fees, but all forcing a company to merge with a larger company does is earn HIM more money. Ichan has a wonderful track record of getting controlling interest in a company, forcing a sale, and then cashing out all of his stock interest for a huge profit.

Jun 10, 2014 1:05am EDT  --  Report as abuse
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