Seven & i shares give up some gains after Couche-Tard offer by Reuters

TOKYO (Reuters) – Shares in Japan’s Seven & i Holdings fell nearly 6 percent in morning trade on Tuesday, giving up some of the previous day’s gains on news of a takeover proposal from Canada’s Alimentation Couche-Tard .

Although the value of the offer was not disclosed, it would make the owner of 7-Eleven the largest ever Japanese foreign takeover target. Couche-Tard owns the Circle-K convenience store chain.

Seven & i said that Couche-Tard has proposed to buy all of its outstanding shares, while the Canadian company confirmed that a “friendly proposal” has been sent to Seven & i, adding that it is focused on achieving a mutually agreeable transaction.

Shares in Seven & i fell 5.7% after losing more than 12% shortly after opening. News of the deal sent the company’s shares up nearly 23 percent in Tokyo on Monday, valuing the retailer at about 5.6 trillion yen ($38 billion).

Couche-Tard, which operates Circle-K convenience stores, is valued at about $58 billion.

(1 USD = 146.2800 yen)