New York City Equity manager ClearBridge Advisors on Monday sent a letter to the board of Casey's General Stores urging it to negotiate with Canada's Alimentation Couche-Tard over its $1.9 billion takeover bid, the Associated Press reported.
The letter stated that it is management's fiduciary duty to Casey's shareholders to negotiate with Couche-Tard. ClearBridge Advisors, however, agreed the offer price does not capture the full earnings power of Casey's or take into account the cost savings and revenue synergies from the combination of the two companies.
In April, Couche-Tard offered $36 a share to buy out the convenience store operator. Casey's rejected the offer, saying it was too low.
Casey's also sued the Canadian company, saying it violated U.S. securities laws by manipulating Casey's stock price during the takeover offer. In response, Couche-Tard took its offer directly to Casey's shareholders this month and says the lawsuit is without merit and will defend itself.