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Dollar General makes counter bid for Family Dollar

Aug 18 (Reuters) - Discount retailer Dollar General Corp offered to buy Family Dollar Stores Inc for $78.50 per share in cash, trumping an offer by Dollar Tree Inc .

The deal, at an enterprise value of $9.7 billion, was proposed in a letter to Family Dollar's board.

Last month, Dollar Tree offered to pay $74.50 per share in cash and stock for Family Dollar, at an enterprise value of about $9.2 billion.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Kirti Pandey)