Following an unsolicited proposal from Alimentation Couche-Tard, Casey’s General Stores stock grew 20.7% to $38.10 in premarket trading Monday after the company unanimously rejected the offer, The Street reported.
Casey’s received the unsolicited buyout proposal for $36 a share in cash on March 9. In a statement released on April 9, Casey’s said “the board unanimously determined that the proposal is not in the best interests of the corporation and informed Couche-Tard on March 29, 2010 that it had rejected the proposal.”
Last week, Couche-Tard made the proposal public after Casey’s board unanimously rejected it. ”Your continued failure to engage in discussions about our proposal is not in the best interest of your shareholders or any of your other constituencies,” Alain Bouchard, CEO of Laval, Quebec-based Couche-Tard, said in a letter to Casey’s board included in the statement.
Casey’s board responded with a letter to Couche-Tard saying it was “very disappointed” with Couche-Tard’s “hostile public campaign,” The Street reported.