The Canadian company attempting a hostile takeover of the Casey’s Convenience store chain has upped their offer to shareholders. Alimentation Couche-Tard has increased its offer to buy Casey’s shares to $38.50 , a $1.75 increase. The company had just announced it was extending its previous offer through September 30th.

The Ankey-based Casey’s board of directors issued a statement advising shareholders not to take any action at this point, as the company plans to review the offer and make a recommendation. The Casey’s board has continued to reject Couche-Tard offers, calling them inadequate, and the number of shares offered the Canadian company has continued to drop.

It was at just over 1% of the outstanding stock before the announcement of the increased bid. Casey’s recently conducted a buyback of around 25% of its stock for $38 a share. Couche-Tard in announcing its new stock offer pointed out the offer is 50-cents higher than the price Casey’s is paying in the buyback, and says it represents a 32% premium over the one year average closing price of Casey’s stock.

The statement from Couche-Tard’s president urges the Casey’s board to begin discussions with his company “to maximize the value for Casey’s shareholders and make this combination a reality.

See the Couche-Tard news release here: Couche-Tard offer 9-1 PDF