7-Eleven Rejects Initial Bid

DALLAS-7-Eleven’s board of directors recommended to shareholders the rejection of a $1.2-billion, $32.50-per-share takeover bid made earlier this month by Seven-Eleven Japan, the convenience-store giant’s majority owner, in efforts to take it private. Now the 7-Eleven board will contact the Tokyo-based bidder to discuss an increase in the offer.

Seven-Eleven Japan executives have scheduled a deadline of midnight, Eastern Standand Time, on Oct. 18 to complete their tender offer. In a statement, the firm says that it will review the reasons for the rejection of the offer and then decide whether or not to withdraw the bid.

7-Eleven’s shares have been hovering around $35 since the Seven-Eleven Japan’s initial offer. Yesterday they closed trading at $35.59.