Seven & i Holdings Surge in Share Price

(Reuters) – Shares of Seven & i Holdings surged more than 10% on Wednesday after Bloomberg News reported that Alimentation Couche-Tard (ACT) raised its takeover proposal price by more than a fifth, valuing the Japanese retailer at $47.1 billion.

The new bid, at $18.19 per share, is over 20% higher than ACT's previous offer and was sent last month, according to Bloomberg sources.

Seven & i stated it was not in a position to comment as it was determining the facts of the report. Canada’s ACT was not immediately available for comment.

As of 0130 GMT, the Japanese company's shares had pared their gains and were up 4.7% at 2,335 yen ($15.76).

If the deal proceeds, it would mark the largest-ever overseas buyout of a Japanese firm.

The operator of the 7-Eleven convenience store chain rejected the original offer last month, claiming it “grossly undervalues” the business.

Seven & i is set to report quarterly earnings on Thursday, with analysts and investors keenly awaiting news on its strategies to enhance corporate value. Last week, sources informed Reuters that the company is contemplating selling a stake in its supermarket unit, and Bloomberg noted it might sell part of its Seven Bank holding.

For several years, Seven & i has been under pressure from foreign investors, including ValueAct Capital and Artisan Partners (NYSE:APAM), to improve its asset allocation.

($1 = 148.1300 yen)