The previously unidentified "strategic third party" to make an offer for Casey's General Stores turns out to be 7-Eleven.
According to The Wall Street Journal, privately-held 7-Eleven Inc. has offered $40 a share to acquire the smaller convenience store chain, topping the $38.50 previously offered by Alimentation Couche-Tard.
Casey's considers both bids to be inadequate but reports suggest it is open to talks with 7-Eleven despite its defensive response to Couche-Tard to date. Couche-Tard operates convenience stores under its own banner in Canada as well as the Circle K and Mac's chains in the U.S.
"Couche-Tard has met its match," Ben Brownlow, analyst with Morgan Keegan & Co., told The Globe and Mail. "I would say that 7-Eleven at this point wants it more, given that their opening offer is $40."
Couche-Tard, which has nominated eight individuals to replace Casey's entire board, was critical of the announcement.
"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.
Discussion Question: Does a deal with Alimentation Couche-Tard, 7-Eleven, or staying independent make the most sense for Casey's General Stores going forward?