The Japanese proprietor of comfort retailer chain 7-Eleven has rejected a $38bn (£29.2bn) takeover bid from a Canadian rival.
In a letter addressed to the Circle Okay proprietor Alimentation Couche-Tard (ACT), Seven & I Holdings mentioned the Canadian firm’s supply “grossly” undervalued the corporate and was fraught with regulatory threat.
The 7-Eleven proprietor added, nonetheless, that it stays open to negotiations and able to think about a greater proposal.
ACT didn’t instantly reply to a BBC Information request for remark.
“The Particular Committee believes that your proposal is opportunistically timed and grossly undervalues our standalone path and the extra actionable avenues we see to understand and unlock shareholder worth,” Seven & I’s letter mentioned, referring to a particular committee it shaped to contemplate the supply.
ACT’s supply comes at a time of great weak spot within the Japanese yen towards the US greenback, making Seven & i extra inexpensive to international patrons.
“Your proposal doesn’t adequately acknowledge the a number of and important challenges such a transaction would face from US competitors regulation enforcement companies,” Seven & I’s letter added.
7-Eleven is the world’s largest comfort retailer chain, with 85,000 retailers throughout 20 nations and territories.
ACT’s footprint within the US and Canada would greater than double to greater than 20,000 websites had been a deal to go forward.