The owner of c-store powerhouse 7-Eleven has spurned a $38bn takeover bid, but said it is open to further discussions.
Japanese company Seven & i Holdings Co, the owner of 7-Eleven, said the offer from Canadian business Alimentation Couche-Tard (ACT) “grossly” undervalued the retailer and brought regulatory risk, the BBC has reported.
However, it did not entirely close the door on a potential deal and said it was willing to consider an improved offer.
In a letter to ACT, Stephen Dacus, chair of a special committee of independent directors for Seven & i, which was created to consider the offer, wrote: “The special committee believes that your proposal is opportunistically timed and grossly undervalues our standalone path and the additional actionable avenues we see to realize and unlock shareholder value.”
He added: “Your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from US competition law enforcement agencies.”
ACT’s initial offer valued Seven & i at $14.86 per share, about 20% above its share price before the takeover interest was revealed.
ACT operates approximately 17,000 stores in 30 countries and territories in North America, Europe and Asia under the Circle K and Couche-Tard brands. Its presence in the US and Canada would double to 20,000 locations if a takeover of 7-Eleven is successful.
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