Alimentation Couche-Tard boosts offer for Casey’s takeover
Laval, Quebec, Canada Canadian c-store chain Alimentation Couche-Tard said Thursday it has raised its offer to acquire Casey’s General Stores, hoping to persuade shareholders to back the takeover.
The new offer is $36.75 a share, compared with the $36 initial offer, according to a statement released by the company. Couche-Tard made its bid to acquire the U.S. convenience store chain public last April when Casey’s rebuffed the Canadian’s approaches.
Couche-Tard, which has announced at least 29 acquisitions targets in the United States since 2001, plans to use the purchase to expand in the Midwest.
Casey’s, with more than 1,500 locations, had said the bid “significantly undervalues” the Ankeny, Iowa-based company, and its board has recommended that shareholders reject the offer.
Couche-Tard began an unsolicited tender offer for Casey’s last month, urging Casey’s to accept the bid or face a proxy fight. Couche-Tard plans to nominate a slate of nine independent candidates for election to Casey’s board.
Borders closes sale of Paperchase
ANN ARBOR, Mich. Borders Group announced it has closed on the previously announced transaction to sell Paperchase Products Limited to Primary Capital Limited, a U.K.-based private equity firm, for approximately $31 million USD.
On July 13, Borders announced it would sell Paperchase.Under the agreement, Borders Group said it will continue to purchase and carry products designed and sourced by Paperchase in its U.S. stores.
The company will receive proceeds of approximately $31 million (USD based on current exchange rates) upon closing, which is expected within the next week. The company is required to use $25 million of the proceeds to reduce the amount outstanding under its $90 million term loan credit facility. The completion of the sale is subject to customary closing conditions.
“We’re excited by the opportunity to build on the success of Paperchase, which is a well known design-led stationery brand in the United Kingdom, whose products have received great visibility through Borders stores in the United States,” said Graham Heddle, a director of primary Capital. “We look forward to working with the Paperchase team to build the business over the next few years.”
Borders Group acquired a majority interest in Paperchase in 2004.
Ebay’s revenue up in Q2
SAN JOSE, Calif. Ebay reported that revenue for the fiscal second quarter ended June 30, increased 6% to $2.2 billion, or 15% excluding Skype, compared with the same period of 2009. The company recorded second-quarter net income on a GAAP basis of $412.2 million, or 31 cents per diluted share, and non-GAAP net income of $530.2 million, or 40 cents per diluted share, representing an 18% increase excluding Skype, compared to the same period of 2009.
“We delivered strong second quarter results, demonstrating the global strength and increasing diversity of our business,” said John Donahoe, Ebay president and CEO. “PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce. And our Ebay turnaround remains on track, with strong performance in Europe, significant changes in the United States and continued improvements to the buying and selling experience. We continue to focus on delivering strong financial results, managing a healthy balance sheet and making the necessary investments to compete, win and satisfy our customers.”