Activist investor, Carl Icahn and his affiliates sold around 3.82 million shares of Family Dollar Stores, Inc. (NYSE:FDO) based on his latest regulatory filing with the Securities and Exchange Commission (SEC).

Carl Icahn
Carl Icahn image via FBN

Icahn and his affiliates still own 6,869,032 shares of 6.03% stake in Family Dollar Stores, Inc. (NYSE:FDO).

Details of the stock sale

The filing indicated that Icahn and his affiliates sold their shares in Family Dollar Stores, Inc. (NYSE:FDO) on July 28-29.

High River Limited Partnership sold 223,800 shares for $75.41 per share on July 28. The firm sold additional 4,000 shares for $75.95 per share and 536,596 for $75.15 per share on July 29.

Icahn Partners LP sold 529,267 shares for $75.41 per share on July 28. The firm sold additional 9,503 shares for $75.95 per share and 1,274,760 shares for $75.15 on July 29.

Icahn Partners Master Fund LP sold 365,933 shares for $75.41 on July 28. The firm sold additional 6,497 for $75.95 per share and 871,623 shares for $75.15 a share.

Carl Icahn: Better returns can be achieved elsewhere

The activist investor and his affiliates explained that they decided to dispose of a portion of their shares in Family Dollar Stores, Inc. (NYSE:FDO) “after concluding that better returns can be achieved by deploying capital elsewhere rather than waiting either for the Dollar Tree transaction to close or for the possibility of a higher offer to emerge.”

Carl Icahn and his affiliates also indicated that they will continue to evaluate the situation, and may determine to sell or buy additional shares of Family Dollar Stores, Inc. (NYSE:FDO) in the future, depending on their perception regarding the possibility of a higher bid, market conditions and other factors.

Dollar Tree offered to acquire Family Dollar

Early this week, Dollar Tree, Inc. (NASDAQ:DLTR) offered to acquire Family Dollar Stores, Inc. (NYSE:FDO) for $8.5 billion or $74.50 per share in cash and stock. The board of directors of both companies unanimously approved the proposal.

The discount retail chain said it would pay $59.60 per share in cash to the shareholders of Family Dollar Stores, Inc. (NYSE:FDO) plus $14.90 worth of Dollar Tree, Inc. (NASDAQ:DLTR) shares for every Family Dollar share they own.

Icahn demanded the sale of Family Dollar Stores, Inc. (NYSE:FDO) after he became the largest shareholder of the company. He noted that the company “consistently underperformed its peers on most, if not all, operating metrics.” He pointed out, “It is imperative that Family Dollar be put up for sale immediately.”