Sector Spotlight: Discount Retailers Become Acquisition Targets

Family Dollar Stores (NYSE:FDO) has received a go-private buyout offer from Nelson Peltz’ hedge fund Trian Capital for $55-60 per share. Will this kick off a wave of M&A in the discount retailer space?

Considering the offer is a 25% premium to Family Dollar’s closing price, other CEO’s and shareholders may see a merger or acquisition as a way to perpetuate an awesome run since the economic collapse — especially since Wall Street’s new mantra is consumers are ready to start trading up to Target (NYSE:TGT) and Walmart (NYSE:WMT) from bargain basement goods.

Here are the other discount retailers to add to your watchlist:

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