Caltex rejects Couche-Tard takeover offer, opens door for revised bid

MONTREAL — Caltex Australia Ltd., Australia's largest retail fuel and convenience chain, is rejecting a $7.7-billion takeover offer from Alimentation Couche-Tard Inc., however it is giving the Canadian company a chance to increase its bid.

The Australian company says the current proposal undervalues the company and "does not represent compelling value for Caltex's shareholders."

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However, the Caltex board has offered Couche-Tard access to selected non-public information to allow the Canadian company to come up with a revised offer.

Caltex operates approximately 2,000 service stations.

Couche-Tard raised its offer for Caltex to AU$34.50 per share last month after being rebuffed in October when it made a offer of AU$32 per share.

Couche-Tard already owns about two per cent of Caltex shares.

This report by The Canadian Press was first published Dec. 3, 2019.

Companies in this story: (TSX:ATD.B)

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