Report: RadioShack could be delisted
New York — RadioShack has been notified by the New York Stock Exchange that it failed to satisfy listing standards and could be delisted after its average stock price stayed below $1 for 30 days, according to a document the company filed Friday with the Securities and Exchange Commission, the Dallas Business Journal reported.
RadioShack shares will continue to trade as usual on the NYSE. Under the exchange rules the troubled retailer has six months from the date of notification to regain compliance, or get its shares back above $1.
RadioShack said it will notify the NYSE that it intends to cure the issue and regain compliance.
Dollar Tree, Family Dollar create juggernaut with $8.5 billion merger
Chesapeake, Va. – In a merger that will shake up the dollar store retail vertical, Dollar Tree is acquiring Family Dollar for $8.5 billion in cash and stock. The resulting company will operate more than 13,000 locations in the U.S. and Canada, with an annual sales volume of $18 billion.
The deal was unanimously approved by the boards of both companies and involves Dollar Tree paying Family Dollar shareholders $59.60 in cash and $14.90 in equivalent Dollar Tree shares. Including debt, the deal is worth about $9.2 billion and comes in about 23% above Family Dollar’s closing stock market value on July 25.
“We will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands, and when this transaction is complete, we will operate under the Family Dollar brand as well,” said Dollar Tree CEO Bob Sasser. “Throughout our history, we have strived continuously to evolve and improve our business. This acquisition, which enhances our footprint and diversifies our company, will enable us to build on that progression, and importantly, positions Dollar Tree for accelerated growth. By offering both fixed-price and multi-price point formats and an even broader, more compelling merchandise assortment, we will be able to provide even greater value and choice to a wider array of customers.”
Sasser said the deal would extend the company’s reach to lower-income customers and strengthen and diversify its store footprint while also delivering significant synergies by leveraging the organizations' best practices. Dollar Tree anticipates that the transaction will result in $300 million of annual run-rate synergies to be fully realized by the end of the third year after closing.
Plans call for Family Dollar CEO Howard Levine to remain with the combined company, reporting to Sasser, and serving as a member of the board.
“For more than 54 years, Family Dollar has provided value and convenience to customers. Dollar Tree also has a rich history of providing great value to customers, and together, as one company, we can provide more customers with even greater value and convenience,” Levine said.
The deal is a culmination of a process that began last winter and included discussions of potential combinations with other partners, Levine said. The comprehensive review process ultimately determined the combination with Dollar Tree was in the best interest of shareholders.
“This combination will enable Family Dollar to accelerate efforts to improve the business and will benefit our dedicated team members who will now be part of a larger, more diverse organization,” Levine said. “I am excited about our future with Dollar Tree, and I look forward to working with the Dollar Tree team to complete the combination as quickly as possible to realize the compelling benefits for all our stakeholders.”
Activist investors Carl Icahn and Nelson Peltz, who had both acquired major stakes in Family Dollar, had been pushing the Family Dollar board to make a sale. The new company will have more North American stores than Wal-Mart.
Weather Trends: August 2014
WTI expects August 2014 temperatures to trend similar to last year for the U.S. as a whole. Much of the East will trend warmer than last year with the Southeast also trending warmer than normal. Summer clearance promotions will see the biggest returns during the first three weeks of the retail month in the eastern half of the nation. A sharp change to colder weather at the end of the month in the North will be more favorable for back-to-school and autumn categories. Precipitation will be greater than last year across the Plains for the month overall. Wetter trends in the final week of August will be an additional positive for autumn categories in the East. Hurricane activity will continue to run below normal; however, should a storm develop and threaten the U.S. mainland, the Texas Gulf Coast will stand the highest risk of impact.
Weather Trends International offers year-ahead business weather forecasts and intelligence to hundreds of major retailers, suppliers, and we also support many commodity/energy traders. We offer an unparalleled competitive advantage by helping our clients proactively plan for the weather up to a year in advance. For more information on what we can do for you, please contact Jack Grum [email protected] or call 610-807-0118.