Casey's in buyout talks with 7-Eleven

09/09/2010 - 23:34

NEW YORK (Reuters) - Casey's General Stores Inc confirmed it was in buyout talks with convenience store operator 7-Eleven, which offered the company $40 per share in cash earlier this month.

The $2.03 billion offer topped a $38.50-a-share offered by Canada's largest convenience store chain, Alimentation Couche-Tard Inc . Ankeny, Iowa-based Casey's had previously said there was a rival bidder to Couche-Tard, without naming it.

Casey's said its board "firmly believes that Casey's value substantially exceeds $40 per share" but has authorized discussions with 7-Eleven. Goldman Sachs & Co is its financial advisor, while Cravath, Swaine & Moore LLP and Ahlers & Cooney PC are providing legal advice, the company said.

(Reporting by Ritsuko Ando;editing by Sofina Mirza-Reid)