By Josh Beckerman
Carl Icahn reported a 9.4% stake in Family Dollar Stores Inc.
and announced plans to seek discussions with the retailer to
discuss "strategies to enhance shareholder value," potentially
including the exploration of strategic alternatives.
Family Dollar shares, down nearly 7% in 2014, jumped more than
10% in after-hours trading following the news.
Mr. Icahn said in a filing with the Securities and Exchange
Commission that he and his affiliates "may also determine to seek
shareholder board representation if appropriate." The filing called
Family Dollar's stock "undervalued."
Family Dollar has struggled amid growing competition from
Wal-Mart Stores Inc., which is opening smaller locations, and rival
dollar-store chains.
In April, Family Dollar--which caters to low-income shoppers and
has more than 8,100 locations--said it planned to slow down store
growth next fiscal year. In contrast, rivals Dollar General Corp.
and Dollar Tree Inc. are charging ahead with their expansion
plans.
Icahn joins other notable asset managers in owning Family
Dollar. Nelson Peltz's Trian Fund Management LP possesses a 7.4%
stake, according to FactSet, while John Paulson's Paulson & Co.
has a 5.7% stake.
Write to Josh Beckerman at josh.beckerman@wsj.com
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