The CEO of Casey`s General Stores (Nasdaq: CASY) Robert J. Myers has appealed directly to the shareholders of the company to reject the "lowball offer"of Alimentation Couche-Tard (TSX: ATD.A, ATD.B), as Casey`s has executed well on its strategic growth initatives and delivered far more value than Couche-Tard`s $36.75 per share offer, he said.
The letter goes on to state that the Casey`s has consistently outperformed its convenience store peers, delivering high returns and dividends over the past years. Myers gives the example of how prior to Couche-Tard`s offer, its share price increased 24% compared to its competitors over the past three years, while its peers were down 46.3% for that same period.
Further, Myers states that Couche-tard`s "questionable behaviour" regarding its allegedly manipulative sale of Casey`s shares, as well as its unwillingness to offer more than $38 per share, led the board to conclude that there was no basis for discussion.
The CEO also made a point of saying that Couche-Tard mischaracterized its recapitalization plan to distract shareholders. With its recapitalization plan and growth initiatives, the company is already delivering more value than Couche-Tard`s offer, he said.
Couche-Tard is the largest company-owned convenience store operator with a network of 5,878 stores located in most areas of the United States and all Canadian provinces. Headquartered in Laval, Canada, Couche-Tard has roughly 53,000 employees with revenue of US$15.8 billion in 2009. After more than four months after making its offer to purchase Casey`s public, Couche-Tard has still not secured financing for the deal, according to Myers.
Casey's has 1,531 stores operating in the midwest in the United States.