7-Eleven stocks hit all-time high

0 Comments | Deseret News (Salt Lake City), Oct 24, 2005 | by Associated Press

DALLAS -- Shares of 7-Eleven, the world's largest convenience- store chain, hit a record high on Friday after parent Seven-Eleven Japan Co. raised its offer for the 27.3 percent stake in the U.S. company it doesn't already own to $1.38 billion.

The Japanese parent raised its offer $5 cash per share, or 15 percent, to $37.50 per share. The revised offer expires at midnight EST on Nov. 8.

Seven-Eleven Japan made an original offer of $32.50 per share on Sept. 1. But a special committee of directors of Dallas-based 7- Eleven recommended last month shareholders reject it.

The Japanese parent said it expects the committee of Dallas- based 7-Eleven to endorse the new offer and that it will close the deal by year end. The U.S. company did not immediately respond to requests for comment.

Seven-Eleven Japan also said it had reached an agreement to settle class action lawsuits filed by the U.S. unit's shareholders following the initial offer. A spokesman said the deal with plaintiff lawyers is subject to court approval. He declined to discuss details of the agreement.

The Japanese company said that 203,245 shares were tendered under the original offer. Holders of those shares would get the improved price if the latest offer is accepted.

Seven-Eleven operates or franchises about 5,800 stores in the United States and Canada and licenses more than 22,000 worldwide.