Casey’s receives new offer, trumping Alimentation bid

Casey’s General Stores urged investors not to accept a bid by Laval, Quebec-based Alimentation Couche-Tard, saying it has received a higher bid from a third party.

The U.S. retail chain said the offer is friendly and worth $40 a share in cash. It didn’t name the bidder. That tops a sweetened offer last week from Alimentation of $38.50 a share, worth a total of $2 billion. .

“While the Board firmly believes that Casey’s value substantially exceeds $40 per share, it has authorized discussions with the third party to explore whether a transaction can be reached that reflects the true value of Casey’s and is in the best interests of Casey’s, its shareholders and other constituencies,” the company said in a note.

Couche-Tard, which operates 5,800 stores across North America, has been locked in a takeover battle with Casey’s since April.

The Canadian company also plans a proxy battle in an attempt to replace Casey’s board at a shareholder meeting on Sept. 23.

On Tuesday, Alimentation sent a letter to Casey’s shareholders urging them to vote to elect eight new board members.