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(Adds Dollar Tree's answer)
April 5 (Reuters) – Activist investor Starboard Value LP announced Friday that it was withdrawing its candidacy for the board of directors of Dollar Tree Inc., saying it was delighted with the the company's decision to test several price levels in its stores.
In January, Starboard lobbied for changes in the discount chain, seeking to capitalize on criticism from some investors and badysts that Dollar Tree should consider raising prices for certain products to more than one. dollar.
The hedge fund, with its director appointments, had urged Dollar Tree to explore all the alternatives for its Family Dollar business, including a sale.
Last month, the company announced plans to close hundreds of additional Family Dollar stores. It also announced better-than-expected fourth-quarter sales.
"We continue to have constructive conversations with management and to recognize their progress, as well as the significant increase in shareholder value through promises made since our involvement," Starboard said.
Dollar Tree acknowledged Starboard's decision in a statement and said it was committed to its plan to improve the performance of Family Dollar. (Manas Mishra report in Bengaluru, edited by G Crosse and Sandra Maler)
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