Couche-Tard Discusses Higher Price for 7-Eleven Owner
A bid would need to be significantly higher than the initial proposal of $14.86 per share in order to get Seven & i enter negotiations, according to the people.
Kkritika Suri
Alimentation Couche-Tard Inc. is reportedly considering enhancing its takeover bid for Seven & i Holdings Co. in an effort to persuade the Japanese convenience store operator to enter negotiations, according to sources familiar with the matter.
The sources, who asked to remain anonymous due to the private nature of the discussions, said Couche-Tard is evaluating how much it can increase its initial offer. Following this news, shares of Seven & i rose by as much as 7.3% during late morning trading in Tokyo on Thursday.
To initiate talks, the bid would need to be significantly higher than the original offer of $14.86 per share, the sources said.
Seven & i rejected Couche-Tard’s $39 billion buyout proposal last week but expressed a willingness to engage in “sincere discussions” if a revised offer better reflected the company's value and addressed competition concerns.
A representative for Couche-Tard reiterated that the retailer remains confident that working together could lead to increasing value for Seven & i shareholders but declined to provide further comment.
Despite this, Couche-Tard faces challenges. The price gap between both parties is reportedly so large that the possibility of reaching an agreement is significantly reduced, according to the sources.
Couche-Tard is still considering its next move, and there is no guarantee it will submit a new offer, the sources added. The company stated earlier this week that it hopes to negotiate a friendly takeover with the 7-Eleven operator.
Seth Fischer, chief investment officer at Seven & i shareholder Oasis Management, expressed his disappointment on Bloomberg Television over the rejection of Couche-Tard’s acquisition proposal. "Couche-Tard has put forward a very serious proposal, and I’m a little disappointed with the company’s reaction," Fischer said.
