Alimentation Couche-Tard makes hostile bid for Casey’s
New York City Canadian convenience store operator Alimentation Couche-Tard said Wednesday it is taking its $36 per-share cash offer for Casey’s General Stores directly to shareholders in a tender offer after Casey’s rejected its bid in April, the Associated Press reported.
Casey’s said in April the bid undervalues the Ankeny, Iowa, company.
The new bid is worth $1.87 billion in total, excluding about $29 million in Casey’s debt. Couche-Tard also plans to nominate nine candidates for Casey’s board of directors.
In a statement, Couche-Tard CEO Alain Bouchard said it was “unfortunate” that Casey’s rejected the offer in April without any discussion or negotiation.
“We continue to believe that a combination of Casey’s and Couche-Tard is compelling and would deliver superior value to our respective shareholders, employees, business partners and other constituencies,” he added. “We are confident that the shareholders of Casey’s will recognize the seriousness of our interest and send a strong message to the Casey’s board that they should sit down with us immediately to negotiate a mutually acceptable transaction.”
Couche-Tard is one of the largest convenience store operators in North America, operating about 5,700 outlets under the Couche-Tard, Mac’s, Circle K, 7-jours, Dairy Mart, Daisy Mart, Beckers and Winks banners. The company is also the master franchise holder for Dunkin’ Donuts quick-service restaurants in Quebec. It operates more than 3,500 stores across the United States.
Casey’s operates about 1,500 stores.
Fire up some savings
As it has become more challenging for retailers to demonstrate value on leading brands, one of Target’s favorite strategies is the $5-gift-card offer when shoppers purchase two or more featured items. While it’s a nice bonus to get $5 for free on items shoppers purchase regularly, this week’s “wow” item is a Brinkman-brand gas grill featured in the retailer’s circular. Available in red or stainless steel, shoppers can receive a $100 gift card for purchasing the $329 product with free assembly. The allure of $100 makes the prospect of purchasing the grill much more compelling.
Target wins again, but who saw it?
Brand Target scored a victory this weekend at the Indianapolis 500, when Dario Franchitti took the checkered flag for Target Chip Ganassi Racing. Franchitti led 155 of the race’s 200 laps to claim his second Indianapolis 500 victory. Not only did the Target sponsored car win the race, but the other car Target sponsors, driven by Scott Dixon, finished in fifth place. That’s great news from a competition standpoint, but unfortunately from a marketing standpoint the Indianapolis 500 is not platform for marketing communications it once was. Interest in the event continues to wane as numerous empty seats were visible in the stands throughout the race. And from the standpoint of television viewers, there is nothing worse or more boring that when a driver leads from wire to wire as was practically the case with Franchitti’s dominant showing.