Ankeny, Iowa -based Casey’s General Stores Inc. is telling its shareholders to reject the hostile $1.9 billion buyout offer from Alimentation Couche-Tard, the Associated Press reported.
Casey’s board said the $36-per-share bid from Canada’s Couche-Tard Inc. is too low and isn’t in Casey’s best interest. In a statement Tuesday, Casey’s CEO Robert Myers called the unsolicited offer “self-serving.”
Couche-Tard has 3,500 stores across the U.S. while Casey’s has about 1,500 convenience stores mostly in the Midwest.
Casey’s board members had previously said the April buyout offer was too low, but the Canadian company took its bid directly to shareholders in a tender offer. Couche-Tard on Monday announced its slate of nine-director nominees to be voted on at Casey’s shareholders meeting. A date has not yet been set for the meeting but is typically held in September.
Casey’s General Stores Inc. responded to Alimentation Couche-Tard Inc.’s intention to nominate nine individuals for election to Casey’s Board of Directors at the company’s 2010 Annual Meeting.
“Casey’s Board will evaluate Couche-Tard’s submission and candidates consistent with the Company’s bylaws,” Casey’s said in a statement.
Goldman, Sachs & Co. is acting as financial advisor to Casey’s, and Cravath, Swaine & Moore LLP and Ahlers & Cooney PC are providing legal advice.
Casey’s plans to file with the SEC and mail a proxy statement in connection with its 2010 Annual Meeting of Shareholders to its shareholders. Investors and security holders can obtain a free copy of the proxy statement and other documents (when available) that Casey’s files with the SEC at the SEC’s Web site at www.sec.gov and Casey’s Web site at www.caseys.com.