NEW YORK (CNNMoney) -- Family Dollar has rejected a nearly $10 billion buyout bid from Dollar General, saying it's sticking with an agreement to merge with Dollar Tree for less money.
Family Dollar said in a statement that its board rejected the Dollar General bid "on the basis of antitrust regulatory considerations."
The Dollar General bid, at $78.50 per Family Dollar share, topped the offer from Dollar Tree of $74.50 per share, or about $8.5 billion.
Also, Dollar General offered all cash, as opposed to Dollar Tree's offer combo of cash and stock.
Family Dollar CEO Howard Levine said that the board's decision was unanimous and reaffirmed support for its pending merger with Dollar Tree.
A spokeswomen for Dollar General declined comment. The company's stock dipped on the news.
All three of the chains specialize in low-cost consumers goods.
Dollar General calls itself the largest discount retailer in the U.S., with more than 11,000 stores in 40 states.
™ & © 2014 Cable News Network, Inc., a Time Warner Company. All rights reserved.
A/C donation after Watchdog exposes ripoff
A Port St. Lucie man will sleep in a cool house for the first time in a year thanks to the generosity of two companies.
State closes Blue Front a 2nd time for rodents
Roaches closed the doors of two restaurants, but when they reopened they didn't want to talk about the pest problem. Plus a rat problem…
Don't let tire trouble delay July Fourth travel
When was the last time you checked your tires? The Consumer Watchdog shows you why you may want to check your tires before you hit the road…