Microsoft Corporation (NASDAQ:MSFT) Gets Surprise Inspection in China; Family Dollar Stores, Inc. (NYSE:FDO) Brings Cheers To Investors
Microsoft Corporation (NASDAQ:MSFT) recently disclosed that Chinese government officials have made sudden visits to its offices in China, but kept the reason for the inspections undisclosed. China’s State Administration for Industry & Commerce, which Chinese media reported had made the visits to Microsoft offices in Beijing, Shanghai, Guangzhou and Chengdu, declined to give comment outside of working hours.
Reuters reported Microsoft has been a focus of anti-U.S. technology sentiment in China since U.S. National Security Agency (NSA) contractor Edward Snowden revealed widespread spying programs, including PRISM, which used U.S. company’s technology for cyber espionage.
In an e-mailed statement, the Microsoft spokeswoman said: “We aim to build products that deliver the features, security and reliability customers expect and we’re happy to answer the government’s questions,” but declined to give any further information.
The world’s largest software company has had a rocky time in China, including a call by state media for “severe punishment” against American tech firms for helping the U.S government to steal secrets and monitor China.
Family Dollar Stores, Inc. (NYSE:FDO) soared 22% in pre-market trading on Monday after news that Dollar Tree, Inc. (NASDAQ:DLTR) is buying rival discount store Family Dollar in a cash-and-stock deal valued at about $8.5 billion. Pursuant to the terms of the deal, stockholders of Family Dollar Stores will receive $59.60 in cash and the equivalent of $14.90 in shares of Dollar Tree for each share they own. The companies put the value of the transaction at $74.50 per share, which represents about 23 percent premium to Family Dollar’s Friday closing price of $60.66. Family Dollar shareholder are set to own somewhere between 12.7 percent and 15.1 percent of Dollar Tree’s outstanding common shares at closing.
Dollar Tree, Inc. (DLTR) was also making noteworthy gains following the announcement. Dollar Tree plans to finance the deal with available cash, bank debt and bonds. The boards of both companies have unanimously approved the deal, which is expected to close by early next year. It still needs approval from Family Dollar shareholders.