7-Eleven Bids $40/Share Casey's General Stores (CASY)
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Price: $61.90 +0.75%
Overall Analyst Rating:
NEUTRAL (
Down)
Dividend Yield: 1.2%
EPS Growth %: +21.0%
Overall Analyst Rating:
NEUTRAL (
Down)Dividend Yield: 1.2%
EPS Growth %: +21.0%
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Casey’s General Stores Inc. (NYSE: CASY) has received an offer of $2.03 billion to be acquired by 7-Eleven Inc., according to a report from the Wall Street Journal on Wednesday citing people familiar with the matter.
The offer from 7-Eleven of $40 per share, tops the offer of $38.50 per share from Canadian convenience-store operator Alimentation Couche-Tard Inc., which has been attempting to acquire Casey’s for several months via a hostile takeover.
"Casey’s Board thoroughly reviewed the revised offer and unanimously recommends that you NOT tender into the offer, as it substantially undervalues Casey’s and is not in the best interests of Casey’s, its shareholders and other constituencies," the company said on Tuesday in a statement to shareholders.
Casey's added that it had received a preliminary proposal from a "strategic third party," which ended up being the offer from 7-Eleven, according to the Wall Street Journal.
"While the Board firmly believes that Casey’s value substantially exceeds $40 per share, it has authorized discussions with the third party to explore whether a transaction can be reached that reflects the true value of Casey’s and is in the best interests of Casey’s, its shareholders and other constituencies," Casey’s added in its statement to shareholders.
Couche-Tard said that the move by Casey’s to enter into talks with 7-Eleven, as a shareholder vote on the company’s directors is set for September 23.
"We believe this is another maneuver orchestrated by the Casey's board to artificially inflate its stock price leading up to the shareholder vote," Couche-Tard said in a statement.
Shares of Casey’s are up 7 cents to $43.20 in extended trade on Wednesday.
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The offer from 7-Eleven of $40 per share, tops the offer of $38.50 per share from Canadian convenience-store operator Alimentation Couche-Tard Inc., which has been attempting to acquire Casey’s for several months via a hostile takeover.
"Casey’s Board thoroughly reviewed the revised offer and unanimously recommends that you NOT tender into the offer, as it substantially undervalues Casey’s and is not in the best interests of Casey’s, its shareholders and other constituencies," the company said on Tuesday in a statement to shareholders.
Casey's added that it had received a preliminary proposal from a "strategic third party," which ended up being the offer from 7-Eleven, according to the Wall Street Journal.
"While the Board firmly believes that Casey’s value substantially exceeds $40 per share, it has authorized discussions with the third party to explore whether a transaction can be reached that reflects the true value of Casey’s and is in the best interests of Casey’s, its shareholders and other constituencies," Casey’s added in its statement to shareholders.
Couche-Tard said that the move by Casey’s to enter into talks with 7-Eleven, as a shareholder vote on the company’s directors is set for September 23.
"We believe this is another maneuver orchestrated by the Casey's board to artificially inflate its stock price leading up to the shareholder vote," Couche-Tard said in a statement.
Shares of Casey’s are up 7 cents to $43.20 in extended trade on Wednesday.
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