ANKENY, Iowa — Casey’s General Stores here on Thursday confirmed that it has entered discussions with 7-Eleven about a possible acquisition of Casey's by 7-Eleven, following reports to that effect earlier this week.
Casey's, which has been the subject of a hostile takeover bid by Circle K parent Alimentation Couche-Tard, said 7-Eleven last week made an unsolicited "preliminary proposal" for a "consensual transaction" in which it would buy Casey's for $40 per share. Couche-Tard had recently upped its offer for Casey's to $38.50 per share, which Casey's said was too low.
"While the board reviewed the [7-Eleven] proposal and firmly believes that Casey’s value substantially exceeds $40 per share, it has authorized discussions with 7-Eleven to explore whether a transaction can be reached that reflects the true value of Casey’s and is in the best interests of Casey’s, its shareholders and other constituencies," Casey's said in a filing with the Securities & Exchange Commission.
Casey’s said Goldman, Sachs & Co. is acting as its financial advisor to Casey’s, and Cravath, Swaine & Moore LLP, and Ahlers & Cooney PC are providing legal advice.