Dollar General takes offer to Family Dollar investors

A merger fight among three discount stores is heating up Wednesday.

Dollar General DG is taking its $9.1 billion offer for Family Dollar Stores Inc. FDO straight to its target's shareholders on Wednesday in a hostile offer.

Family Dollar has fended off the takeover offer so far, and its board rejected Dollar General's plan. The pitch straight to shareholders is an offer that tenders Family Dollar at $80 a share.

The offer is scheduled to expire at 5:00 p.m. ET, on Oct. 8, Dollar General said in a statement Wednesday morning.

That's just above Family Dollar's Tuesday closing price of $78.70. The rub: Family Dollar has agreed to be bought by Dollar Tree DLTR for $8.5 billion. The Dollar Tree deal is valued at $74.50 per share, lower than Dollar General's offer.

Approaching shareholders isn't be much of a surprise.

When Dollar General upped its bid for Family Dollar earlier this month, analysts said the writing was on the wall for the deal to go through — but that Dollar General would likely have to go straight to Family Dollar shareholders.

The move is risky, says the Wall Street Journal, because Dollar General would be offering to buy Family Dollar without access to confidential financial information. It should allow it to start antitrust discussions with the Federal Trade Commission, however.