(Bloomberg)-A shareholder in the Japanese Seven & I Holdings Co. Under pressure on the company to switch on “deeper” with Alimentation Couche-Tard Inc. About his buyout approach of $ 47.5 billion.
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“The board has made various decisions that leave important unanswered questions,” said the portfolio managers of Artisan Partners Asset Management Inc. N. David Samra and Benjamin L. Herrick in a letter to the board of Seven & I on Sunday. The money manager owns stakes of approximately 1% in both the company and the Couche-Tard, according to data collected by Bloomberg.
“Those questions revolve around possible conflicts of interest and not pursuing the path that offers the best future for the company and maximizes value,” they said. Seven and I could not be reached immediately for comments outside of regular office hours.
Couche-Tard, the Canadian supermarket and gas station operator who owns the Circle K brand, suggested last year to buy the parent company of 7-Eleven for $ 18.19 per share.
Seven & I have derived the approach by pursuing a revision from the company to unlock the shareholder value. It announced last week to wipe changes, including administrative director Stephen Dacus who took over the CEO that CEO, the sale of his Superstore Business for $ 5.4 billion, a share purchase program worth ¥ 2 trillion ($ 13.5 billion) and a list of its American activities.
Artisanan partners, who have been encouraging negotiations between the two parties for months, said that there are “serious questions” about the role of Dacus as chairman of the special committee that supervises the bid of Couche-Tard, and as he served in the appointment committee “while his own role in the company was considered.”
“Minimum” standards for corporate governance would have demanded that Dacu’s resign from both committees, the investor said.
“Shareholders cannot have faith that the special committee has led or will continue to be carried out a thorough evaluation process,” said Artisan Partners, adding that the company will probably vote against DACUs and other board members during the next annual general meeting, depending on the answers of Seven & I.
The Japanese and Canadian retailers said last week in separate explanations that they worked together on a potential disinvestment of American stores to overcome anti -resting nuisances if an acquisition becomes the best option.