Publish date:

7-Eleven Committee Says Buyout Offer Too Low

Discussions are ongoing toward a higher bid.

A special committee of


(SE) - Get Report

board rejected a buyout offer that sent the convenience chain's stock up more than 20% earlier this month.

TST Recommends

Tesla Lead

Tesla Loses Key Shareholder as Panasonic Sells Stake for $3.6B

Tesla loses electronics giant Panasonic, one of its key battery-making partners, as a key shareholder.

Virgin Galactic Lead

Virgin Galactic Surges After FAA Approves Commercial Space Launch License

The Richard Branson-backed aerospace group will launch a crewed test flight later this summer as billionaires continue to push space travel boundaries.

The committee, formed after 7-Eleven's Japanese parent offered to buy out the U.S. company's public owners at $32.50 a share, said the price is "inadequate" and "not in the best interest of the shareholders." It urged shareholders to reject an ongoing tender offer.

"The special committee instructed its financial and legal advisers to contact 7-Eleven Japan's financial and legal advisers to commence discussions regarding an increase in the tender offer price," the company said. "These discussions have commenced; however, there can be no assurance as to when or if such discussions will result in an increase in the tender offer price by 7-Eleven Japan."

The Japanese company already owns about 73% of 7-Eleven's outstanding stock. It has already begun tendering for the rest as part of an offer that could total about $1 billion.

Seven-11's stock closed Wednesday at $35.54.