Carl Icahn last night demanded Family Dollar be put up for sale “immediately.”
Family Dollar’s response: Thanks, but we’ve got this.
Now, Family Dollar is going to have to try harder to ward off Icahn.
In a statement following Icahn’s letter, Family Dollar said the company’s board and management is, “committed to acting in the best interest of the company and our shareholders.”
Family Dollar added that it is, “always open to constructively communicating with our shareholders with the shared goal of enhancing value.”
This is boilerplate language, or the kind of neutral legalese you hear when a company is forced to respond to an activist investor.
What Family Dollar is really saying is that it’s not just going to sell the company on Icahn’s suggestion.
In his letter to Family Dollar, Icahn said that if an agreement to sell the company cannot be reached, he would contact the company’s shareholders directly and seek to replace the entire board and install directors that will have a mandate to sell the company.
On CNBC this morning, Jim Cramer said Family Dollar is a poorly run company, and that Carl Icahn is right that the company needs a change.
Cramer said that usually, when a company is poorly run, the board is supposed to fire the CEO, which hasn’t happened at Family Dollar.
Carl Icahn hasn’t really sought to shake up a company since his calls for eBay to spin off its PayPal unit earlier this year.
It seems Icahn has found his latest target.
Shares of Family Dollar are up by 2% today.