CASY Declines $38.50 Offer; Shares Surge

Casey's General Stores Inc

rejected the $38.50 a share offer by Alimentation Couche-Tard Inc (

)

on Tuesday, citing a higher bid. Casey's General Stores advised shareholders to turn their back on Alimentation Couche-Tard's buyout offer, as its board looks into a higher offer. ANCUF had sweetened its bid for CASY to $38.50 a share on September 1, up 4.8% from its previous bid of $36.75 a share. The quick mart operator said it was considering a $40 a share "preliminary proposal” from a “strategic third party. The company said, "While the board firmly believes $40 per share substantially undervalues Casey's, it has authorized discussions with the third party to explore whether a transaction can be reached that reflects Casey's true value and is in the best interests of Casey's, its shareholders and other constituencies." Shares of CASY jumped 8.10% to $42.05 at 1:38 pm on Tuesday. Read more