REUTERS/ Chip East Hedge fund titan Carl IcahnCarl Icahn has taken a new 9.39% stake in Family Dollar, and shares of the discount retailer are surging.
Shares of Family are up nearly 10% in after hours trade following disclosure of the stake.
In his filing, Icahn says he acquired the shares of Family Dollar, "in the belief that they were undervalued."
The filing adds that Icahn sees "great long-term potential" in Family Dollar's industry and believes its current situation is analogous to those faced by CVR Energy, Forest Labs, Chesapeake Energy and Biogen, other companies in which Icahn has been involved in the past.