Alimentation Couche-Tard makes hostile bid for Casey’s after offer rejected
By APWednesday, June 2, 2010
Alimentation Couche-Tard bids $1.87B for Casey’s
NEW YORK — The owner of Circle K convenience stores is taking its $36-per-share cash offer for Casey’s General Stores Inc. directly to shareholders in a tender offer after Casey’s rejected its bid.
The offer from Alimentation Couche-Tard Inc. is a nearly 1 percent discount to Casey’s closing price on Tuesday. But it is a 14 percent premium to the stock price before Alimentation Couche-Tard made its initial offer.
Couche-Tard also said Wednesday that it plans to nominate nine candidates for Casey’s board of directors.
The total bid is worth $1.87 billion, excluding about $29 million in Casey’s debt.
In a statement, Couche-Tard CEO Alain Bouchard said it was “unfortunate” that Casey’s rejected the offer in April without any discussion or negotiation and added, “We are committed to making this combination a reality and, to that end, are taking our offer directly to the shareholders of Casey’s.”
In April Couche-Tard said the acquisitions would “form a stronger, more competitive player.”
On Wednesday, Bouchard added that any deal would provide “superior value to our respective shareholders, employees, business partners and other constituencies.”
Casey’s, based in Ankeny, Iowa, advised shareholders not to take action regarding the tender offer. It said it was reviewing the offer and will make a recommendation to shareholders within 10 days. The tender offer expires July 9.
In April, Casey’s said the offer undervalued the company.
Couche-Tard is headquartered in Canada but has more than 3,500 stores across the U.S. such as Circle K.
Casey’s operates about 1,500 stores.
