“There is no actionable proposal from Mr. Junro Ito and Ito-Kogyo for 7&i to consider at this time,” the company stated. “7&i remains committed to exploring all opportunities to unlock value for shareholders and continues to assess a full range of strategic alternatives, including the proposal from Alimentation Couche-Tard.” The failure of the management buyout increases the chances of Couche-Tard acquiring one of Japan’s most recognized retailers, which owns 7-Eleven convenience stores. Couche-Tard reiterated its commitment to reaching a mutually agreeable transaction with Seven & i. Seven & i’s stock plummeted over 12% in Tokyo trading, marking its largest daily drop since becoming a holding company in 2005. Itochu shares surged by up to 6.8%. Couche-Tard’s $47 billion bid for Seven & I exemplifies the growing international interest in Japanese assets. An exit from deflation and corporate governance reforms have attracted more investors to a market once considered nearly inaccessible to foreigners. After receiving a takeover bid from Couche-Tard last year, Seven & i’s founding family began discussions for a management buyout, which would have been the largest in history if successful. Couche-Tard initially offered $38.5 billion, later increasing it to $47 billion following Seven & i’s rejection of the first bid. — news from Reuters
