Casey's General General Stores Receives $40 Per Share Offer (CASY)

According to a report from TD Newcrest, Casey's General Stores CASY has "received a preliminary proposal from a strategic third party regarding a consensual transaction at $40 per share in cash." The company indicated that the bid "substantially undervalues" Casey's but its Board has "authorized discussions with the third party to explore whether a transaction can be reached that reflects Casey's true value and is in the best interests of Casey's, its shareholders and other constituencies." Alimentation Couche-Tard, a Canadian based convenience store operator, has already offered $38.50 for CASY, which has been summarily rejected. Now that a mystery bidder has stepped up with a competing, and better, offer it is possible that a bidding war may ensue. During today's trading session, CASY has gained $42.61.