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