Canada’s Alimentation Couche-Tard is trying to assure shareholders that management hasn’t lost sight of operations amid fragile talks over a potential takeover of rival Seven & I Holdings.
The parent company of the Circle K chain has been pursuing Seven & I for months, bidding almost $50 billion for it, but has been rebuffed. The Japanese owner of 7-Eleven stores has raised concerns over antitrust issues in the U.S. and launched an overhaul of its business, arguing that it can produce better returns over the long run as a standalone company.
Couche-Tard shares are down 13% this year and and have fallen 20% from last year’s highest closing level, as investors weigh the odds of a large acquisition with the evidence of a slowdown in consumer spending.
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