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Published Thu, Jul 29, 2010 06:17 AM
Modified Thu, Jul 29, 2010 08:48 AM

Peltz gets Family Dollar's attention

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BY ALAN M. WOLF - STAFF WRITER

An activist retail investor has bought a large stake in Family Dollar Stores and is pushing the Matthews-based discount chain to boost shareholder value.

Calling Family Dollar stock "undervalued," billionaire Nelson Peltz disclosed in a regulatory filing that he owns more than 8.7 million shares. He has met with management, including CEO Howard Levine, to discuss strategy such as increasing sales per square foot.

Peltz buys large chunks of retail businesses and seeks improvements. His investment arm, Trian Fund Management, owns large stakes in jeweler Tiffany's and fast-food chain Wendy's/Arby's Group, The Associated Press reports.

Peltz said he may propose one or more nominees to Family Dollar's board. Family Dollar has seen sales increase during the recession as shoppers seek bargains. It has expanded food offerings and taken other steps to boost results.

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