Law firm launches Casey’s investigation
Bensalem, Pa. A Pennsylvania law firm announced Friday it is investigating potential claims against the board of directors of Casey’s General Stores related to a tender offer by Canadian c-store chain Alimentation Couche-Tard.
The law offices of Howard G. Smith said the investigation concerns possible breaches of fiduciary duty and other violations of law by Casey’s board of directors related to its consideration of the tender offer.
Couche-Tard’s proposed all-cash transaction to acquire Casey’s is valued at approximately $1.9 billion. Under the terms of the tender offer, Casey’s shareholders will receive $36.75 in cash for each share of Casey’s common stock they own. A previous tender offer by Couche-Tard to acquire Casey’s for $36.00 per share was rejected by the company’s board of directors in June.
In response to the increased offer, Casey’s issued a statement advising its shareholders not to take any action regarding the most recent tender offer and that the company’s board “will review the revised tender offer and make a recommendation to shareholders in due course.”
Safeway quarterly results in line with expectations
PLEASANTON, Calif. Safeway reported net income of $141.3 million (37 cents per diluted share) for the second quarter of 2010 compared with $238.6 million (57 cents per diluted share) for the second quarter of 2009. The second quarter of 2009 included a $57.8 million tax benefit (14 cents per diluted share) from the resolution of a tax matter.
“Our second quarter results were in line with our expectations, and we are encouraged by our volume trends in the quarter,” said Steve Burd, chairman, president and CEO. “However, deflation continues in price per item and is not expected to significantly improve until the fourth quarter. As a result, we have lowered our expectations for the balance of the year.”
Total sales were $9.5 billion in the second quarter of 2010, essentially flat compared with $9.5 billion in the second quarter of 2009. A higher Canadian exchange rate and higher fuel sales were largely offset by a 2.5% decline in identical-store sales, excluding fuel, the company reported.
Safeway is updating guidance for the year to $1.50 to $1.70 earnings per diluted share and non-fuel ID sales of -1% to -1.5%. The company said it continues to expect cash capital expenditures of approximately $0.9 to $1.0 billion and free cash flow of $0.9 to $1.1 billion.
Amazon.com 2Q sales up 41%
SEATTLE Amazon.com announced that net sales increased 41% to $6.57 billion in the second quarter, compared with $4.65 billion in second quarter 2009. Excluding the $48 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 42% compared with second quarter 2009.
Net income increased 45% to $207 million in the second quarter, or 45 cents per diluted share, compared with net income of $142 million, or 32 cents per diluted share, in second quarter 2009.
“We’re seeing rapid growth in Kindle, Amazon Web Services, third-party sales, and retail. We’re also encouraged by what we see in mobile. In the last twelve months, customers around the world have ordered more than $1 billion of products from Amazon using a mobile device,” said Jeff Bezos, founder and CEO of Amazon.com. “The leading mobile commerce device today is the smartphone, but we’re excited by the potential of the new category of wireless tablet computers. Over time, tablet computers could become a meaningful additional driver for our business.”
For the third quarter, Amazon.com expects net sales to be between $6.9 billion and $7.6 billion, or to grow between 27% and 40% compared with third quarter 2009.