Dollar Tree (NASDAQ:DLTR) stock fell Monday after activist investor Mantle Ridge announced its intention to try to replace the entire Dollar Tree board. Dollar Tree called the move "unwarrantedly aggressive" and said it had offered to explore a settlement with Mantle Ridge, which owns 5.7% of Dollar Tree.
The following statement was issued Sunday by the board: "Dollar Tree’s Board of Directors and management team maintain an ongoing dialogue with shareholders and welcome input about the Company’s strategy and performance.
"We are however disappointed that Mantle Ridge has been unwilling to engage with us constructively and has instead chosen to proceed in such an unwarrantedly aggressive and hostile manner. Mantle Ridge’s overreach in seeking to replace our full Board with its own hand-picked slate -- despite having no ideas or plans to improve on our business or operations -- is not justified nor would it be in the best interests of Dollar Tree shareholders."
"Dollar Tree’s Board of Directors and management team have deep industry and operational knowledge in areas highly relevant to the Company’s operations. Further, Dollar Tree’s recently refreshed Board, including a majority of independent directors who were elected since January 2016, has a valuable mix of experience and insights to drive the Company’s strategy and oversee management’s execution.
"By contrast, most of Mantle Ridge’s hand-picked nominees are drawn from boards of companies at which Mantle Ridge is highly influential, if not in total control, hardly a model of good corporate governance."
DLTR shares dropped $2.33, or 1.7%, to 139.22.
