7-Eleven parent rejects takeover bid from owner of Circle K

Sept. 6 (UPI) -- The Japan-based parent company of 7-Eleven said in a statement on Friday that it was rejecting a takeover bid from the Canadian parent of Circle K convenience stores, arguing that their $38.55 billion offer "grossly undervalues" their company.

Seven & i Holdings said the takeover offer from Alimentation Couche-Tard was not in the best interest of the company.

The proposal came after Seven & i announced in April a restructuring plan that would allow it to expand its 7-Eleven stores worldwide while moving away from its failing supermarket business.

In a letter to the Canadian firm, 7 & i board chair Stephen Dacus said his company unanimously rejected the offer but remained open to another proposal. He did not specifically name figures but said it had to be fair to the shareholders of both companies.

"We are open to engage in sincere discussions should you put forth a proposal that fully recognizes our standalone intrinsic value and addresses our concerns regarding the certainty of closing in the current regulatory environment," Dacus said in the correspondence.

"We do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction."

The U.S. firm Artisan Partners, which owns a 1% stake in Seven & i, had been pushing the company to consider buyout offers and solicit offers for its subsidiaries because it believes its overseas allocations have been overlooked.