US c-store business Casey’s General Stores has accused Canadian rival Couche-Tard of trying to buy retailers south of the border “on the cheap” and rejected its US$1.9bn takeover bid.
Casey’s today (9 April) slammed Couche-Tard’s “hostile” takeover bid after the Canadian group went public with its interest in the US business.
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In a letter to Couche-Tard president and CEO Alain Bouchard made public by Casey’s, the US retailer said it was “very disappointed” that the affair had been publicised.
“As we previously informed you, our board of directors takes its fiduciary duties very seriously and unanimously determined to reject your proposal after a thorough, thoughtful evaluation of it in consultation with our financial and legal advisors. Your proposal significantly undervalues Casey’s and is not in the best interests of the corporation,” Casey’s president and CEO Robert Myers wrote in the letter to Bouchard.
Casey’s said Couche-Tard had first approached the business with its $36-a-share offer on 9 March. Almost three weeks later, Casey’s told Couche-Tard that it would reject the bid.
In making its bid public today, Couche-Tard said its offer represented a 14% premium on Casey’s share price when trading closed yesterday.
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By GlobalDataCasey’s boss Myers, however, said Couche-Tard’s offer “underscores that you are attempting to acquire U.S. companies on the cheap”.
He added: “We agree with you that the US convenience store operators are currently undervalued. However, we will not hand over to you the significant long-term value of Casey’s that rightly belongs to our shareholders.”
