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.
4 dead rats found at Delray Beach restaurant
From Palm Beach Gardens to Boca Raton, four kitchens were shut down for pests. Consumer Watchdog Jenn Strathman shows you where you might be…
Firefighters want change to protect homeowners
Companies that help you pick up the pieces after a fire are coming under fire. The fire restoration business is unregulated and some feel…
Do you qualify for Target security breach money?
Time is running out to get your share of a settlement from Target. It’s related to the security breach during the 2013 holiday shopping…