Casey’s General Store confirms it received buyout offer from 7-Eleven

Casey’s General says it’s in talks with 7-Eleven

LOS ANGELES — Casey’s General Stores Inc. confirmed Thursday it is in talks with 7-Eleven Inc. after receiving an unsolicited buyout offer from the convenience store operator.

Casey’s, which operates a chain of convenience stores in the Midwest, said 7-Eleven offered last week to buy the company for $40 a share in cash, or $2.04 billion.

Casey’s board of directors believes the company is worth substantially more than what Dallas-based 7-Eleven is offering, but opted to continue talks.

Earlier this week, Casey’s said it had received a $40-a-share offer from a third party it did not name. The Wall Street Journal reported Wednesday that the mystery bidder was 7-Eleven.

Acquiring Casey’s would bolster 7-Eleven’s reach in North America. There are more than 7,100 7-Eleven stores in the U.S. and Canada.

Casey’s, which is based in Ankeny, Iowa, operates 1,531 stores.

But 7-Eleven isn’t Casey’s only suitor. The company is also being courted by Canadian convenience store operator Alimentation Couche-Tard Inc.

Casey’s has rebuffed several offers from Alimentation. On Tuesday, it rejected a bid of $38.50 a share, or $2.03 billion as too low, but has agreed to further talks with the company.

Couche-Tard, which owns the Circle K brand in the U.S., has struggled to build support for its attempt to acquire Casey’s and has nominated eight people for election to the Casey’s board.

Casey’s will hold its annual stockholders’ meeting Sept. 23.

Shares of Casey’s fell a penny to $43.94 in aftermarket trading after rising 82 cents to $43.95 during the regular session, an indication investors are expecting a bidding battle beyond 7-Eleven’s $40 a share offer. Over the last year, the shares have traded between $29.03 and $44.04.