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You are here: Home / Business / Casey’s board responds to hostile takeover attempt

Casey’s board responds to hostile takeover attempt

June 8, 2010 By Dar Danielson

The Board of Directors of the Casey’s convenience store chain has responded to Canadian company’s attempt at a hostile takeover of the Ankeny-based business. The Casey’s board filed a response with the Securities and Exchange Commission that recommends that shareholders reject the $36-a-share offer from Couche-Tard, saying it substantially undervalues Casey’s and is not in the best interest of the shareholders.

Casey’s president Robert Myers says in a statement that “we believe this is a self-serving and transparent attempt by Couche-Tard to take significant value that rightly belongs to Casey’s shareholders.” The statement from Casey’s says Couche-Tard has used “questionable” tactics in attempting to facilitate its offer to buy the chain. It says the Canadian company purchased approximately 3.9% of Casey’s stock through a third party, and then sold almost all of its shares at a profit following the market reaction to the public announcement of its purchase offer.

The Casey’s statement says Couche-Tard has repeatedly stated it is committed to buying Casey’s but says the company’s decision to sell a significant ownership stake which would have been helpful in completing the transaction “raises serious questions about their level of commitment.” The Casey’s statement also says Couche-Tard’s intention to nominate nine people for election to the Casey’s board is “clearly and attempt by Couche-Tard to gain control of Casey’s to force through its inadequate proposal to acquire the company.”

The Canadian company made the offer to shareholders to attempt a hostile takeover of the company after the Casey’s board in March rejected its unsolicited offer to buy the company at the same share price.

See the complete Casey’s response here: www.caseys.com

 

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