Paul Singer, head of investment firm Elliot Advisors Limited nominated seven executives to the board of directors of Family Dollar Stores, Inc. in order to even out the  playing field.

Currently Singer is one of the largest shareholders with 4.9 stake in Family Dollar Stores Inc. and is urging the dollar store to sell to Dollar General Corp.

"We took this action in order to protect our interests as one of Family Dollar's largest shareholders," Elliot Advisors said in a letter to Family Dollar's board of directors.

Elliot further stressed that its move to nominate directors was done to ensure that Dollar General Corp is given an equal playing field in its acquisition of Family Dollar.

Furthermore, the offer made by Dollar General Corp. is reportedly "clearly superior" than another company who plans to merge with Family Dollar, Dollar Tree Inc.

Elliot, however, acknowledged the efforts done by Family Dollar Stores Inc.'s board in choosing to merge with Dollar Tree Inc. but stressed that it fallen short of creating a "bidding war" between two "well-capitalized strategic acquirers."

The firm also said that some of Family Dollar's board members "lack expertise and independence to give its shareholders maximum value."

Family Dollar Stores Inc. must aim to ensure shareholders of maximum benefits and other practical limitations or a merger, according to Elliot.

Aside from that, Elliot said that Family Dollar will need to shell out a termination fee worth $2.68 per share if Dollar General Corp. is able to purchase the company.

"Given Dollar General's ability to pay a significantly higher price than the $80 per share currently on offer, we believe it is incumbent on the board to take all steps necessary to assess the deliverability of a superior Dollar General proposal. It is our sincere hope that the Board will have renewed opportunity to do so," the investment firm said.