Dollar Tree just announced that it would be buying rival Family Dollar for $US74.50 per share, which represents a 22.8% premium over Friday’s closing price of $US60.66.
Among the big winners of this deal: Carl Icahn.
In June, Icahn disclosed a 9.39% stake in Family Dollar. That’s 10,691,011 shares.
Family Dollar is at $US73.00 in pre-market trading, which is up $US12.34 from Friday’s close.
$12.34 x 10,691,011 = $US131,927,075.
The combined company will operated 13,000 deep discount stores across North America.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.