Family Dollar stays on course
MATTHEWS, N.C. -- Family Dollar Stores announced that it will continue to implement its strategic plan. The decision was agreed upon unanimously by the company's board of directors who decided the strategic plan was the best way to deliver value to all Family Dollar shareholders. The company also reported that it would not entertain the proposal from Trian Group to acquire Family Dollar and that pursuit of a sale of the company is not in the best interest of shareholders.
"In September 2010, we shared with investors our strategic plan to accelerate revenue growth, expand operating margins and optimize our capital structure," said Howard Levine, chairman and CEO. "The results from this fiscal year are a positive reflection of this plan. We have accelerated new store openings, launched an ambitious, multi-year store renovation program, and invested to improve our operational capabilities. In addition, our board increased the quarterly dividend by 16% to $0.18 per share and approved a $750 million share repurchase program. As of March 2, 2011, the company had repurchased $400 million of common stock."
The company also announced that its board has adopted a shareholder rights plan, details of which will be contained in a Form 8-K to be filed with the U.S. Securities and Exchange Commission. The rights plan, which has a term of 12 months and a 10% beneficial ownership threshold, is intended to enable all of the company's shareholders to realize the long-term value of their investment in the company, and reduce the likelihood that any person or group would gain control of the company by open market accumulation or otherwise without paying a control premium for all shares.