Alimentation ups offer to win over Casey’s shareholders

Alimentation Couche-Tard said it is sweetening its offer for U.S. convenience store chain Casey’s General Stores for a second time in the latest twist in its hard-fought takeover battle.

Laval, Quebec-based Alimentation said it was offering $38.50 a share in cash, taking the total bid value to $2 billion. The original bid make in April was for $36 a share.

“In raising our offer, we have taken into account the views of the Casey's shareholders and our goal of completing a transaction that makes compelling strategic sense for both companies,” said Alain Bouchard, Alimentation’s president and chief executive.

In a move designed to thwart, Alimentation’s bid, Casey’s last week carried out a recapitalization plan, under which it offered to buy back stock at $38 a share. Casey’s said more than 50% of outstanding shares were tendered to the offer.

“The fact that a majority of the then-outstanding shares of Casey's were tendered at $38.00 per share demonstrates that our revised offer to acquire 100% of the outstanding shares of Casey's for $38.50 per share in cash is compelling,” Bouchard said.

On Tuesday, Alimentation said it was extending the deadline for its offer by a month until the end of September.

Couche-Tard, which operates 5,800 stores across North America, is also fighting a proxy battle to replace Casey’s board at the annual shareholders meeting on Sept. 23.