New York City Casey's General Stores confirmed Thursday it is in talks with 7-Eleven after receiving an unsolicited buyout offer from the convenience store operator.
Casey's said 7-Eleven offered last week to buy the company for $40 a share in cash, or $2.04 billion.
Casey's board of directors believes the company is worth substantially more than what 7-Eleven is offering, but opted to continue talks. Goldman Sachs & Co is acting as 7-Eleven’s financial advisor, while Cravath, Swaine & Moore LLP and Ahlers & Cooney PC are providing legal advice.
Earlier this week, Casey's said it had received a $40-per-share offer from a third party it did not name. On Wednesday, various reports named 7-Eleven as the bidder.
Casey's is also being courted by Canadian convenience store operator Alimentation Couche-Tard, which owns the Circle K brand in the United States. During the past five months, Casey's has rebuffed several offers from the company.
Acquiring Casey's would expand 7-Eleven's reach in North America. There are more than 7,100 7-Eleven stores in the United States and Canada. Casey's operates 1,531 stores.
Casey's will hold its annual stockholders' meeting Sept. 23.