After close yesterday, Trian Fund Management, Nelson Peltz' asset management company, filed a 13D indicating the fund had amassed a 10 million (7.9%) share stake in FDO, and more importantly, expressed a vague, preliminary, non-binding and highly-contingent interest in acquiring discount retailer Family Dollar (closing regular hours at $44). As the proposed price indicated in the letter is $55-60, the shares are expectedly surging, meaning the letter alone resulted in nearly a 20% ($13) gain for Peltz 10 million share investment: $130 million for a few minutes worth of work: not bad. Yet is this anything more than a red herring? After all these kinds of fully contingent letters were all the rage during the bubble years, when funds would "express a purchase interest" with so many contingencies Arnold could drive his Hummer through all the "outs." As soon as the stock surged, the letter writer (and more often than not, the cabal of silent co-investors) would cash out, and slowly the buying interest would evaporate, with the price slowly dropping back to historical levels. In fact, for Trian this is not the first time - the company did an almost identical thing with Chemtura back in 2008, only to completely leave the company in March of 2009, months ahead of CEM's filing for bankruptcy (resulting in major losses for Trian). Which is why we urge readers to be very careful before chasing into FDO stock here: we are very concerned that this is nothing more than simply another attempt on behalf of Trian to stir up buying interest in which to sell its 10mm holdings with no real acquisition interest, since with all the non-binding clauses it is extremely difficult to take this letter seriously.
In other words, this is nothing more than the weakest form of a "highly confident" purchase letter with 1001 outs. Yet for Trian the mission has been accomplished: $130 million in minutes without any operational or balance sheet risk. The question is what happens to everyone else who blindly follows the wily manager into this quote unquote deal.
Yahoo messenger I believe is as easy as clicking on the yellow online icon next to the posters name, provided they are online. yahoo will walk you through the process. It was easy for me to get connected.
do a "search" for yahoo Messenger and you will get links where you can download it. only takes a couple minutes. I've had it for years to stay in touch with relatives that have spread all over the US
Bullwinkle60061, Agreed. That's my bet. Potential higher bid somewhere between .50 and 2.00 announced before meeting on 3-1-11, otherwise no vote is highly likely. Last option is yes vote at current offer.