TOKYO (Reuters) – Canada’s Alimentation Couche-Tard Inc. is discussing how much higher it might raise its offer price for Japan’s Seven & I Holdings Inc., Bloomberg News reported on Thursday, citing unnamed people familiar with Couche-Tard’s internal talks.
Coach-Tard said earlier this week it was willing to continue takeover talks after Seven & I rejected its $38.5 billion offer.
Bloomberg reported, citing the sources, that Coach Tarde would have to offer a much higher price than the initial proposal to convince Seven & I to enter negotiations, but whether the suitor will make another offer to Seven & I remains uncertain.
The Financial Times reported separately on Thursday that Seven & I had chosen Nomura to advise its board in preparation for a potential takeover battle with Coach Tarde.
Shares of Seven & I rose more than 4% in late morning trading Thursday.
Koch Tard said it was confident of arranging financing for the deal, which would be the largest foreign takeover of a Japanese company ever.
Seven & I said last week the deal was not in the best interests of its shareholders and could face antitrust challenges in the United States, where the combined company would become the largest retailer by a wide margin.