TOKYO, April 8 (Reuters) - Japanese retailer Seven & i

Holdings ( SVNDF ) is set to record a 24% drop in quarterly

profit on Wednesday as underperformance of its convenience store

business hampers its ability to fend off a takeover attempt by

Canada's Alimentation Couche-Tard ( ANCTF ).

Seven & i ( SVNDF ) is likely to book operating profit of 94.45

billion yen ($639.52 million) for December-February, showed the

average of eight analyst estimates compiled by LSEG. That would

compare with 124.23 billion yen in the same period a year prior.

The 7-Eleven operator's profit has fallen in recent quarters

as domestic convenience store operations underperformed

competitors and its North American arm suffered from lower

consumer spending against a backdrop of accelerating inflation.

At the same time, Seven & i ( SVNDF ) has sought to bat away a $47

billion bid from Circle-K operator Couche-Tard, arguing

initiatives to overhaul its business will increase corporate

value and that antitrust barriers in the U.S. may nix any deal.

A management buyout led by Seven & i's ( SVNDF ) founding family

collapsed in February after failing to secure funding. The

company has since turned to strategies including selling off

non-core businesses and appointing Stephen Dacus as CEO.

In March it announced a $2 billion share buyback and

proposed listing its North American convenience store subsidiary

by the second half of 2026.

Still, Seven & i's ( SVNDF ) share price, which has traded between

around 1,850 yen and 2,250 yen since the start of March, is far

below Couche-Tard's offer of around 2,700 yen, indicating that

investors are sceptical of Seven & i's ( SVNDF ) plans, analysts said.

Last month Seven & i ( SVNDF ) and Couche-Tard said they were working

together to find buyers for around 2,000 of their convenience

stores in the U.S., in their most concrete sign of engagement.

Seven & i ( SVNDF ) has said a divestiture plan is necessary to pass a

U.S. Federal Trade Commission review. Sources have told Reuters

that interested buyers are primarily private equity firms.

Investors and analysts now await the outcome of store-sale

discussions and an update on the listing of Seven & i's ( SVNDF ) North

American subsidiary.

($1 = 147.6900 yen)