Shares of Family Dollar Stores Inc. (NYSE: FDO) are soaring after the discount retailer confirmed late yesterday that it has received an unsolicited bid from the Trian Group, a New York hedge fund, at a price of $55 to $60 per share.
The offer values the company as high as $7.6-billion.
Shares of FDO have surged 23.9 percent to almost $55 per share this morning.
Family Dollar says its board “will review the proposal in due course.”
Trian Group is headed by Nelson Peltz, which has been accumulating shares of the company in recent months and has also met with management to discuss ways to improve its performance.