Casey’s shareholders support board, reject nominees from Circle K owner Couche-Tard

Casey’s shareholders reject Couche-Tard nominees

ANKENY, Iowa — Shareholders of midwestern convenience chain Casey’s General Stores Inc. approved the company’s board nominees on Thursday, rejecting a slate from suitor Alimentation Couche-Tard Inc., which runs the Circle K convenience chain in the U.S.

In an effort to further its bid to take over Casey’s, Couche-Tard had encouraged shareholders to select at least three of its eight nominees to the board.

Couche-Tard, based in Canada, has been trying to take over Casey’s since April. The company last offered $2 billion, or $38.50 per share — which Casey’s rejected as too low.

Casey’s says it also is continuing talks with competitor 7-Eleven, which has offered $2.04 billion, or $40 per share. Casey’s also dismissed that offer as too low. It has not released further details about its talks with 7-Eleven.

Casey’s shareholders, based on preliminary vote count, re-elected all eight of Casey’s incumbent directors.

“We appreciate the confidence that Casey’s shareholders have placed in all of us, and we look forward to continuing to serve on their behalf,” said Robert Myers, the company’s CEO.

Couche-Tard declined to comment.

Morgan Keegan analyst John Lawrence expects Casey’s will not go with either bidder, given the current offers and its already strong returns and management team.

Lawrence said shareholders’ overwhelming support of Casey’s current board shows that Couche-Tard’s bid substantially undervalues Casey’s shares. He said the Canadian company would have to raise the offer to $40 per share to even begin negotiation.

While a deal with 7-Eleven is still possible, Lawrence expects negotiations are unlikely to yield a deal that benefits shareholders.

Shares of Casey’s fell 6 cents to $42.77 in afternoon trading.