Aug 20 Dollar General Corp said it had
expressed an interest in merging with Family Dollar Stores Inc
as early as June this year, but did not go ahead with an
offer at that time as Family Dollar chief executive gave no
indication that the company was in talks with Dollar Tree Inc
Dollar General's representatives had expressed an interest
for a deal during a meeting with Family Dollar CEO Howard Levine
on June 19, but he did not mention anything about an imminent
sale, the company said in a letter to the Family Dollar board.
"At no time during this meeting did Mr. Levine indicate that
there was a process, that there was any urgency to act or that
there were discussions with another potential buyer," Rick
Dreiling, chief executive of Dollar General, said in the letter.
"Had we left the meeting with the belief that a sale of
Family Dollar was imminent, we assure you that our course of
action would have been different."
As a result, Dollar General said it is now forced to factor
a $305 million break-up fee into its offer.
(Reporting by Ramkumar Iyer in Bangalore; Editing by Gopakumar