Deutsche Bank Comments on FDO and DLTR Related to Dollar General (DG) Takeover

Commenting on the takeover premium KKR paid for Dollar General (NYSE: DG), Deutsche Bank said if competitors Family Dollar (NYSE: FDO) and Dollar Tree Stores (Nasdaq: DLTR) were to trade at DG's takeout multiple of 12x on consensus 2007 estimates, that would imply a price of $44 for FDO and $56 for DLTR, over a 50% premium for both.