Carl Icahn Takes 9.39% Stake in Family Dollar
NEW YORK (TheStreet) -- Carl Icahn has taken a 9.39% stake in Family Dollar
The stake, made with stock purchases and options, was accumulated by Icahn starting in early April, with most of the investor's buying taking place since May 27.
Family Dollar, like other brick and mortar retailers, has struggled to grow revenue and profits in recent quarters amid tepid spending activity from U.S. consumers and a shift towards online shopping. Sales fell more than 1% to $2.7 billion in the first quarter of 2014, as profits slumped roughly 35%.
Icahn, however, said in a filing with the Securities and Exchange Commission that Family Dollar shares are undervalued and that the business can be improved.
Family Dollar shares, which had fallen nearly 7% year-to-date as of Friday's close, surged nearly 10% in after-hours trading on Icahn's disclosure.
-- Written by Antoine Gara in New York.