Family Dollar rebuffs Dollar General

MATTHEWS, N.C. - Family Dollar (FDO) has rejected a nearly $9 billion takeover offer from rival Dollar General (DG), citing antitrust concerns.

Family Dollar Stores CEO Howard Levine said in a statement Thursday that its board of directors and advisers reviewed Dollar General's offer and determined it wasn't likely to be completed on the terms proposed.

Family Dollar's board remains supportive of its existing deal with Dollar Tree (DLTR), the nation's biggest dollar-store chain. Dollar Tree earlier this month bid $8.5 billion for the discounter. Merging the two companies would create a chain with 13,000 retail locations and sales of $18 billion.

Family Dollar said at the time that it believed it could quickly address any antitrust issues and was willing to divest up to 700 of its stores in order to get the necessary approvals.