Caltex Australia says offer not good enough
CALTEX Australia says the $8.6 billion unsolicited buyout offer from Canadian convenience store operator Alimentation Couche-Tard undervalues the company.
The fuel importer and retailer says it has released nonpublic information to CoucheTard
so it has the opportunity to come back with a better offer.
Caltex is arguing the bid as it stands does not represent compelling value for shareholders considering factors including a prospective increase in earnings, international growth, and the proposed spinoff of a company that will own 250 of its petrol station properties.
“Caltex has a well-developed strategy, privileged assets, strong leadership and compelling growth opportunities that the board believes will deliver attractive value for its shareholders over time,” chair Steven Gregg said in a statement yesterday.
Last week’s offer of $34.50 a share in cash is the second Caltex has rejected as inadequate. It already rejected a bid on October 11 at $32 a share.
Royal Bank of Canada analyst Irene Nattel said Caltex’s rejection was not entirely unexpected, but that she believed Couche-Tard would “remain disciplined” on offer price.
NAME OF THE GAME: Gold Coast Suns player Hugh Greenwood sports a Hostplus top while training at Carrara.