Couche-Tard extends Casey's offer

Couche-Tard is giving Casey's shareholders more time to consider its offer to take over the U.S. convenience store chain.

Alimentation Couche-Tard Inc. extended Monday its offer to purchase all outstanding Casey's shares for $36 US until Aug. 6.

Couche-Tard's original offer, made in April with a premium of 14 per cent, expired on Friday July 9. When the original offer expired, the Montreal-based company said that 19.2 per cent of outstanding shares (9,792,196 in total) had been tendered.

Casey's board of directors has repeatedly rebuffed Couche-Tard's offer and urged shareholders not to tender as they believe it significantly undervalues the company.

"We believe the timing of your proposal is very opportunistic given the impact of the recession and recent severe weather within our marketing territory. Casey's has navigated the downturn successfully and is extremely well positioned to benefit as the economic recovery continues," Casey's CEO Robert Myers said in a statement rejecting the offer.

The Midwest-focused chain currently owns 1,507 gas stations and convenience stores across the United States.

The deal, subject to approval by Casey directors and shareholders, would be Couche-Tard's biggest foreign acquisition since it purchased the Circle K chain of stores in 2003.

With 5,883 locations overall, Couche-Tard already has a solid U.S. footprint, but little presence in Midwestern states such as Iowa, Missouri and Illinois where Casey's is entrenched.