Casey's Rejects Couche-Tard Again; Announces Recapitalization

The board of directors of Casey's General Stores again asked its shareholders to reject a revised takeover offer from Canadian counterpart Alimentation Couche-Tard, and instead announced a plan to buy back $500 million of its own stock at a higher price per share.

ANKENY, Iowa — The board of directors of Casey's General Stores here on Wednesday again asked its shareholders to reject a revised takeover offer from Canadian counterpart Alimentation Couche-Tard, and instead announced a plan to buy back $500 million of its own stock at a higher price per share.

The $500 million recapitalization would be executed through a "Dutch auction" self-tender offer at share prices between $38 and $40 per share, Casey's said. Couche-Tard's latest tender offer is for $36.75 per share for the entire company.

In a statement Wednesday, Alain Bouchard, president and chief executive officer of Couche-Tard, said "We are disappointed that the Casey's board of directors has rejected our increased $36.75 cash offer and has initiated a recapitalization for only 25% of the shares without even sitting down to talk to us. We will continue to evaluate our options."