Couche-Tard appeals to Casey’s stockholders on its takeover bid; says willing to boost offer

Couche-Tard appeals to Casey’s shareholders on bid

NEW YORK — Alimentation Couche-Tard Inc. is going straight to the shareholders of Casey’s General Stores Inc., ignoring the convenience store operator’s rejection of its approximately $2.03 billion takeover offer and saying it’s willing to boost its bid further.

In an open letter to shareholders Thursday, Couche-Tard said it would consider raising its $38.50 a share offer if it is allowed to perform a confirmatory due diligence review of Casey’s.

Couche-Tard, which runs the Circle K chain in the U.S., has made several bids for Casey’s. But Casey’s, an operator of a chain of convenience stores in the Midwest, maintained on Tuesday that Couche-Tard’s $38.50 per share offer is too low.

Couche-Tard appealed to stockholders in its open letter, explaining that its bid is not much lower than that of 7-Eleven Inc., which has offered $40 a share in cash, or $2.04 billion. The Canadian company claims that Casey’s has rejected its request to hold talks, but is willing to have discussions with 7-Eleven. Casey’s said on Tuesday that it does not believe talks are necessary on Couche-Tard’s $38.50 per share bid.

Casey’s has also expressed concern that Couche-Tard has not given enough details on how it would fund a potential deal. But Couche-Tard said Thursday that it has secured up to $1.5 billion in financing that will be combined with available funds to pay for the acquisition.

The company pressed Casey’s stockholders to vote for its eight board nominees. Casey’s annual shareholders meeting is scheduled for Sept. 23.

Shares of Casey’s, based in Ankeny, Iowa, dropped 59 cents to $43.30.