TOKYO, Sept 12 (Askume) – Canada’s Alimentation Couche-Tard (ATD.TO) is discussing a deal with Japan’s Seven & I Holdings.(3382.T) , Bloomberg News said on Thursday, citing unnamed sources familiar with Couche-Tard’s internal talks.
Earlier this week, Couche-Tard said it was ready to continue takeover talks after Seven&I rejected its $38.5 billion takeover bid.
Couche-Tard would have to offer a price much higher than its initial offer to begin talks with Seven&I, but it remains to be seen whether the applicant will make another offer to Seven&I, Bloomberg quoted sources as saying.
Seven&I has chosen Nomura to advise its board as it prepares for a potential takeover battle with Couche-Tard, the Financial Times reported on Thursday.
Seven&i declined to comment on the increased offer and the advisory appointment. Nomura declined to comment on its appointment.
Seven&i shares were up more than 4% at 2,204 yen ($15.44) by the end of early trading on Thursday, topping Couche-Tard’s offer of $14.86 a share.
Couche-Tard said it was confident of arranging financing for the deal, which would be the largest ever overseas acquisition by a Japanese company.
Seven & i said last week that the deal was not in the best interests of its shareholders and could face anti-competitive challenges in the United States, where the combined company would become the largest convenience store operator.
(1 USD = 142.7200 yen)
