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MW Icahn gets richer off Family Dollar
Jul 28, 2014 08:09:00 (ET)
By Tomi Kilgore
The rich get richer, as activist investor Carl Icahn made at least $149 million in less than two months from his investment in discount retailer Family Dollar
Late on June 6, Icahn disclosed in a tweet that he owned a stake of more than 9% in Family Dollar shares (FDO). At the June 6 closing price of $60.53, the 10,691,011 shares that Icahn owned were worth $647,126,895.83.
At $74.50, the price Dollar Tree (DLTR) is paying for each of Family Dollar's shares, Icahn's stake is worth $796.480,319.50. That's a cool $149,353,423.67, or 23% increase, in 52 days.
It wasn't a smooth ride higher for Family Dollar's stock, however. After jumping 13% on June 9 after Icahn's stake was disclosed, the stock dropped 12% to close Friday at $60.66.
With so much at stake, it's no wonder Icahn was pushing for Family Dollar to be bought out.
Family Dollar shares rose 24% to $75.25 in premarket trade early Monday, while Dollar Tree's shares climbed 7.8% to $58.45. At Friday's closing prices, the shares were down 6.6% and 3.9%, respectively, year to date.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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