June 06--Famed activist investor Carl Icahn said late Friday that he and an investment group have bought a 9.4 percent stake in Matthews-based Family Dollar, and could push for major changes or a sale of the company.
This is the second time in several years that Family Dollar has faced such a challenge. In 2011, activist investor Nelson Peltz made a bid for the discount retailer which Family Dollar ultimately rejected. One of Peltz's associates won a seat on the board of directors, however.
Family Dollar has trailed its rivals, such as Tennessee-based Dollar General, in sales and profit growth. Icahn said in a securities filing that he thinks Family Dollar is undervalued and that he will look into operational changes, seek a seat on the board, or "explore strategic alternatives," which usually means a sale or leveraged buyout of the company.
"Hope to continue our streak of value enhancement," Carl Icahn tweeted about his Family Dollar purchase.
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