Dollar General Corp (NASDAQ:DG.N) raises offer for Family Dollar Stores Inc (NASDAQ: FDO.N); AutoZone Inc. (NASDAQ:AZO) to buy out Interamerican Motor Corp.

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In an attempt to sweeten its bid during pre-market trading hours, Dollar General Corp (NASDAQ:DG.N) had raised its offer for Family Dollar Stores Inc (NASDAQ: FDO.N) to $0.1 billion or $80 per share.

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Dollar General Corp (NASDAQ:DG.N) also warned that it could turn hostile and directly appeal to the shareholders of Family Dollar Stores Inc (NASDAQ: FDO.N) if the new offer was not accepted.

Dollar General Corp (NASDAQ:DG.N), which is the top deep-discount retailer in America, is also said to have stated that it was willing to pay a break-up fee of at least $500 million if the deal offer ran afoul of the US competition law, which was the reason Family Dollar Stores Inc (NASDAQ: FDO.N) had rejected the previous offer of $8.95 bn.

Meanwhile, Family Dollar Stores Inc (NASDAQ: FDO.N) had instead opted for an $8.5 bn cash-and-stock offer from another discount retailer, Dollar Tree Inc (NASDAQ: DLTR.O).

During the pre-market trading on Tuesday, the shares of Family Dollar Stores Inc (NASDAQ: FDO.N) went up 1 percent and stood at $80.52. This is above the offer of Dollar General Corp (NASDAQ:DG.N). This is indicating that some investors were hoping for higher bids.

Meanwhile, shares of Dollar General Corp (NASDAQ:DG.N) went up by 2.3 percent.

On Tuesday, in a letter to the board of Family Dollar Stores Inc (NASDAQ: FDO.N), Chief Executive of Dollar General Corp (NASDAQ:DG.N), Rick Dreiling, said that if Family Dollar Stores Inc (NASDAQ: FDO.N) refuses to engage with his company on its revised offer, his company was planning to persuade the shareholders of Family Dollar Stores Inc (NASDAQ: FDO.N) with a far more better takeover proposal.

Later, Dollar General Corp (NASDAQ:DG.N) also announced that it may dispose of up to 1,500 of its stores in order to clear up an anti-trust review. This is up from its earlier offer of 700 stores.

Dollar General Corp (NASDAQ:DG.N) is said to have hired Richard Feinstein, who is an ex-director of the Bureau of Competition at the Federal TRADE Commission (BCFTC), to get a fresh validation of its anti-trust analysis.

In a bid to play down its anti-trust concerns, Dollar General Corp (NASDAQ:DG.N) informed that the company’s documents will clearly show that all the products it offers are not unique. In fact, they are also being offered by almost all the grocery and drug stores and other mass retailers.

The company also stated that Wal-Mart Stores Inc (NASDAQ: WMT.N), and not the Family Dollar Stores Inc (NASDAQ: FDO.N), was the main driver for its decisions on product pricing.

Officials of Family Dollar Stores Inc (NASDAQ: FDO.N) were not available for a comment on the new development.

AutoZone

AutoZone Inc. (NASDAQ:AZO) has agreed to buy out Interamerican Motor Corp. (IMC) in a bid to boost its range of offerings of imported car parts.

Interamerican Motor Corp is at present operating from 17 locations and is also the second-largest distributor of original and quality imported equipment as replacement parts in the United States, according to AutoZone Inc. (NASDAQ:AZO).

AutoZone Inc. (NASDAQ:AZO) did not reveal the terms of the deal.

Chief Executive of AutoZone Inc. (NASDAQ:AZO), Bill Rhodes, said his company’s leadership in imported car parts will perfectly fit with its current assortment of products.