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Starboard buys stake in Dollar Tree, seeks sale of Family Dollar: WSJ

Published 01/06/2019, 11:45 PM
Updated 01/06/2019, 11:50 PM
© Reuters. A customer walks out of a Dollar Tree discount store in Austin, Texas
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(Reuters) - Activist investor Starboard Value LP has acquired a stake in discount store operator Dollar Tree Inc (O:DLTR) and is asking the company to sell its Family Dollar business, the Wall Street Journal reported on Sunday.

Starboard, which has taken a 1.7 percent stake worth about $370 million in the retailer, is seeking majority control of the board and is also pushing for Dollar Tree to tweak its pricing model, the paper reported https://on.wsj.com/2C2WwFV, citing sources.

The hedge fund nominated seven directors to Dollar Tree's 12-member board, ahead of the nomination deadline last week, WSJ said.

Dollar Tree has been struggling to turn around its Family Dollar business since its acquisition in 2015.

© Reuters. A customer walks out of a Dollar Tree discount store in Austin, Texas

Starboard and Dollar Tree did not immediately respond to Reuters' request for comment outside regular business hours.

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