Caltex rejects Couche Tard takeover offer, opens door for revised bid

Caltex Australia Ltd., Australia's largest retail fuel and convenience chain, is rejecting a $7.7-billion takeover offer from Alimentation Couche-Tard Inc., however it is giving the Canadian company a chance to increase its bid.

The Australian company says the current proposal undervalues the company and "does not represent compelling value for Caltex's shareholders.''

However, the Caltex board has offered Couche-Tard access to selected non-public information to allow the Canadian company to come up with a revised offer.

Caltex operates approximately 2,000 service stations.

Couche-Tard raised its offer for Caltex to AU$34.50 per share last month after being rebuffed in October when it made a offer of AU$32 per share.

Couche-Tard already owns about 2% of Caltex shares.