Canadian retailer Couche-Tard today (28 July) spoke of its “disappointment” that target Casey’s General Stores had turned down its higher takeover bid.
Couche-Tard, which last week upped its offer from US$36 a share to $36.75, has pursued Casey’s since last autumn when it private expressed an interest in the business.
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In April, Couche-Tard went public and made its $36-a-share bid, which Casey’s board has repeatedly rejected.
Earlier today, the Casey’s board rejected Couche-Tard’s higher offer as “inadequate”.
Casey’s also outlined a share recapitalisation offer for up to $500m of its stock. The US retailer said the plan would “generate significant value for its shareholders” and allow investors “to continue in participating in the company’s substantial upside”.
In response, Couche-Tard again attempted to demonstrate the “premium” it was offering to Casey’s investors.,
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By GlobalDataCouche-Tard said its $36.75 bid was “a 12% premium to the all-time and 52-week high trading price of common stock of Casey’s trading prior to 8 April” – the day before the Canadian retailer’s first public offer for the business.
President and CEO Alain Bouchard said: “We are disappointed that the Casey’s board of directors has rejected our increased $36.75 cash offer and has initiated a recapitalization for only 25% of the shares without even sitting down to talk to us. We will continue to evaluate our options.”
