Dollar store deal nets Icahn $149M in 2 months

With so much at stake, it's no wonder the activist investor was pushing for Family Dollar to be bought out.

By MSN Money Partner Jul 28, 2014 12:01PM
Credit: © Heidi Gutman/CNBC/NBCU Photo Bank via Getty Images
Caption: Carl IcahnBy Tomi Kilgore, MarketWatch

The rich get richer, as activist investor Carl Icahn (pictured) made at least $149 million in less than two months from his investment in discount retailer Family Dollar (FDO).


Late on June 6, Icahn disclosed in a tweet that he owned a stake of more than 9 percent in Family Dollar shares. At the June 6 closing price of $60.53, the 10,691,011 shares that Icahn owned were worth $647.1 million.


At $74.50, the price Dollar Tree (DLTR) is paying for each of Family Dollar's shares, Icahn's stake is worth $796.5 million. That’s a cool $149.4 million, or a 23 percent increase, in 52 days.


It wasn't a smooth ride higher for Family Dollar's stock, however. After jumping 13 percent on June 9 after Icahn's stake was disclosed, the stock dropped 12 percent to close Friday at $60.66.


With so much at stake, it's no wonder Icahn was pushing for Family Dollar to be bought out.


Family Dollar shares rose 22 percent to $74.46 in Monday trading, while Dollar Tree's shares climbed 3.5 percent to $56.09. At Friday's closing prices, the shares were down 6.6 percent and 3.9 percent, respectively, year to date. 


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