Seven-Eleven Japan Disappointed
Believes offer for 7-Eleven is compelling value
TOKYO -- In response to 7-Eleven Inc.'s announcement last week recommending that shareholders reject its buyout offer, Seven-Eleven Japan Co. Ltd. (SEJ) said it is disappointed with the special committee's recommendation and believes that its offer of $32.50 per share represents a compelling value to [7-Eleven Inc.'s] shareholders.
Added Seven-Eleven Japan, When the special committee communicates to SEJ the reasons for its position, SEJ will make a determination whether to continue with the offer at the $32.50 per share price, continue discussions with [image-nocss] the special committee and/or its advisors regarding the offer or withdraw the offer.
As reported in CSP Daily News, a committee of Dallas-based 7-Eleven Inc.'s board said that shareholders reject the offer from majority owner Seven-Eleven Japan because the $32.50-per-share bid was inadequate, and that the tender offer was not in the best interests of the shareholders.
The committee added that its advisers are discussing an increased offer with Seven-Eleven Japan, but it could not promise that it would get a better proposal.
Seven-Eleven Japan owns about 73% of the U.S. company's stock. It announced in early September that it was making a $1.2 billion tender offer for the remaining shares.
7-Eleven operates or franchises about 5,800 stores in the United States and Canada and licenses more than 22,000 worldwide. Shares of 7-Eleven Thursday rose eight cents to $35.62 at midday on the New York Stock Exchange (NYSE). The shares, which jumped 22% the day the buyout offer was announced, have traded in a 52-week range between $18.90 and $36.13, said an Associated Press report.