Seven & i Holdings claimed in a letter to the potential buyer that the Circle K owner’s offer “grossly” undervalued the business and was risky in terms of regulations.
However, the owner of 7-Eleven stated that it is still willing to negotiate and is prepared to take a closer look at a stronger offer.
If the takeover is successful, 100,000 people would work for a massive global chain of convenience stores.
The proposal was described in a letter as “opportunistically timed” by Stephen Dacus, the chair of the Seven & I board that is evaluating the purchase.
Mr. Dacus went on to say that the plan “grossly undervalues” the Japanese retail behemoth and its capacity to increase shareholder value.
Operating under the Circle K and Couche-Tard brands, Alimentation Couche-Tard (ACT), a Quebec-based company, operates around 17,000 stores throughout North America, Europe, and Asia.
The prospective buyer valued Seven & I at $14.86 per share in their initial bid. That is more than 20% greater than the share price was prior to the announcement of the offer.
