Casey’s General Stores maintains Couche-Tard’s $2.03B acquisition offer is too low

Casey’s maintains Couche-Tard offer is too low

ANKENY, Iowa — Casey’s General Stores Inc. said Tuesday that it sent a letter to Alimentation Couche-Tard Inc. maintaining that the Canadian company’s approximately $2.03 billion takeover offer is too low.

Casey’s, which operates a chain of convenience stores in the Midwest, has fielded two acquisition offers. Couche-Tard has made several bids for the company, with its most recent being $38.50 a share. Couche-Tard runs the Circle K chain in the U.S.

Last week Casey’s disclosed that it is also in talks with 7-Eleven Inc., which has offered $40 a share in cash, or $2.04 billion.

Casey’s has said it believes the company is worth more than both offers, but it has opted to continue talks with the companies. Its shareholders are to meet Sept. 23.

In the letter sent Tuesday to Couche-Tard President and CEO Alain Bouchard, Casey’s president and CEO, Robert Myers, said that the company doesn’t feel Couche-Tarde’s offer is in the best interest of the business or its shareholders. Myers added that Casey’s does not believe talks are necessary on the $38.50 per share bid.

Myers also said Casey’s was concerned that Couche-Tard did not give enough details on how it would fund a potential deal.

Couche-Tard has asked Casey’s to push back its annual shareholders meeting to give more time to consider its offer, but Myers said the meeting would proceed as scheduled.

Shares of Casey’s gained 26 cents to close at $44.24, earlier in the day setting a new 52-week high of $44.67.