Family Dollar Rejects Hedge Fund Offer

The board of directors of discount retailer Family Dollar has unanimously rejected a takeover bid from a New York hedge fund. Family Dollar is a publicly-held company, but it's still led by the family that opened the first store in Charlotte in 1959. The company's board of directors decided to keep it that way today. The board unanimously rejected an offer from a New York hedge fund. Trian Fund Management offered $55 to $60 a share. That's more than Family Dollar's current stock price, which has been hovering in the low $50s. Still, the company says the offer is not in the best interest of shareholders. Chairman and CEO Howard Levine says Family Dollar's profitability shows its business plan is working. The company has done quite well in the poor economy as more customers seek cheaper prices. Its stock price has jumped more than 150 percent in the last three years. The hedge fund is Family Dollar's largest shareholder, with about 8 percent of the company's stock. Trian officials declined comment.