Shares of Seven & i Holdings surged more than 10% on Wednesday (9 October) after Bloomberg News reported Alimentation Couche-Tard raised its takeover proposal price by more than a fifth, valuing the Japanese retailer at $47.1 billion (€910 million).
The new bid, at $18.19 per share, was more than 20% higher than ACT's previous offer for the Japanese company and was sent last month, Bloomberg said, citing people with knowledge of the matter.
Seven & i said it was not in a position to comment as it was determining the facts of the report. Canada's ACT was not immediately available for comment.
The Japanese company's shares pared their gains and were up 4.7% at 2,335 yen ($15.76) as of 01:30 GMT.
If it were to go ahead, the deal would be the largest ever overseas buyout of a Japanese firm.
Original Offer
The operator of the 7-Eleven convenience store chain rejected the original offer last month saying it 'grossly undervalues' its business.
Seven & i reports quarterly earnings on Thursday and analysts and investors are awaiting news on its plans to increase corporate value.
Last week sources told Reuters that it was considering selling a stake in its supermarket unit and Bloomberg reported that it was considering selling part of its Seven Bank holding.
The retail chain wants to sell the businesses to overseas investment funds, among other possible buyers, the Nikkei reported without mentioning sources. It may disclose the plan at an earnings announcement on 10 October, the newspaper said.
For several years Seven & i has been under pressure from foreign investors, including ValueAct Capital and Artisan Partners, to improve its asset allocation.
