Dollar General joins bidding for Family Dollar
NEW YORK -- Dollar General isn't about to be left out in the cold. The discounter is starting a bidding war for Family Dollar with an approximately $8.95 billion offer as it attempts to trump a Dollar Tree bid.
For Dollar General, the decision to enter the fray was clear because Family Dollar had been on its radar for a while. Dollar General Chairman and CEO Rick Dreiling said during a conference call Monday that the company had expressed interest in combining with Family Dollar multiple times over the last few years.
While Dreiling didn't disclose if there'd been any sticking points in working out an agreement in the past, he said Dollar General was very surprised when Family Dollar announced its deal with Dollar Tree. Despite the shock, Dollar General remains undeterred in trying to work out a transaction.
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Homebuilder confidence rises slightly in August
U.S. homebuilders are feeling more confident in their sales prospects headed into next year, a sign that home construction and sales of newly built homes may pick up after stalling this summer.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose this month to 55, up 2 points from a revised reading of 53 in July.
The latest reading is the third monthly increase in a row and the highest since January, when it was 56. Readings above 50 indicate more builders view sales conditions as good, rather than poor.
Builders' view of current sales conditions for single-family homes, their outlook for sales over the next six months and traffic by prospective buyers each increased since July.
Markets rise as week begins; oil prices fall
The Dow Jones Industrial average rose 175.83 points, or 1.1 percent, to 16,838.74. The Standard & Poor's 500 index rose 16.68 points, or 0.9 percent, to 1,971.74. The Nasdaq composite gained 43.39 points, or 1 percent, to 4,508.31.
U.S. benchmark oil dropped 94 cents to $96.41 a barrel on the New York Stock Exchange. Brent crude, a benchmark for many international crudes used by U.S. refineries, fell $1.93 to $101.60 in London. Wholesale gasoline slipped 4.3 cents to $2.656 a gallon.
Aeropostale rehires ex-CEO amid sales slump
NEW YORK -- Aeropostale is reinstating a past leader as it struggles with sliding sales.
The New York company said Monday that Julian Geiger, its former CEO, is taking over effective immediately. Thomas Johnson is leaving the board of directors as well as relinquishing the CEO title.
Aeropostale has lost money for six consecutive quarters and predicts another loss for the quarter that ended in early August. It is closing 125 of its mall-based P.S. from Aeropostale stores and cutting some corporate jobs as mall traffic drops and shoppers' tastes change.
-- Herald wire reports