business news in context, analysis with attitude

The Des Moines Register reports this morning that Canadian c-store giant Alimentation Couche-Tard has thrown in the towel on its hostile bid to acquire Iowa-based Casey’s General Stores. Yesterday, Couche-Tard said that it has allowed its $38.50-per-share offer to expire, saying that “we have decided not to continue to pursue our offer given the Casey's board's repeated refusal to negotiate with us.”

Casey’s has continually said that the offer was too low, and responded to the Couche-Tard approach by opening negotiations with 7-Eleven, which offered $40-per-share. At the company’s annual meeting last week, shareholders supported Casey’s management, refusing to elect an alternative slate put up by Couche-Tard.

According to the Register, “Analysts peg the stock's real future value at $46 to $49, depending on whether Casey's decides to remain independent or sell part of the company to another firm.”
KC's View: