TOKYO (Reuters) – Shares of Japan’s Seven & I Holdings Inc fell about 6 percent in morning trade on Tuesday, giving up some of their gains the previous day when they were boosted by news of a takeover bid from Canada’s Alimentation Couture.
Although the value of the offer was not disclosed, it would make the 7-Eleven owner the largest Japanese target ever for a foreign takeover. Couche-Tard owns the Circle-K convenience store chain.
Seven & I said that Couche Tard had proposed to buy all of its outstanding shares, while the Canadian company confirmed that it had sent a “friendly proposal” to Seven & I, adding that it was focused on reaching a mutually acceptable deal.
Shares of Seven & I fell 5.7%, having lost more than 12% shortly after the open. On Monday, news of the deal sent the company’s shares up about 23% in Tokyo, valuing the company at about 5.6 trillion yen ($38 billion).
Couture, which operates Circle K stores, is valued at about $58 billion.
(1 dollar = 146.2800 yen)
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