Dollar General ups bid for rival chain

GOODLETTSVILLE, Tenn. - Dollar General (DG) is boosting its bid for rival Family Dollar (FDO) to approximately $9.1 billion and says it's now willing to more than double the number of stores it would shed to avoid trouble with regulators.

The newest bid from Dollar General is worth $80 per share, up from $78.50. Dollar General's previous bid, worth nearly $9 billion, was rejected by Family Dollar in favor of an offer of about $8.5 billion one Dollar Tree Inc.

Dollar General Corp. said Tuesday it will now divest 1,500 stores to steer clear of antitrust issues. It previously said it would divest up to 700 stores. The Goodlettsville, Tennessee company has also agreed to pay a $500 million reverse break-up fee to Family Dollar Stores Inc. if the deal runs into antitrust roadblocks.