07:59 AM EDT, 09/05/2024 (MT Newswires) -- Japanese retail giant Seven & i will inform Canada's Alimentation Couche-Tard ( ANCTF ) that its takeover bid price is "inadequate," a source familiar with the matter said on Thursday, Reuters is reporting from Tokyo.

Seven & i will ask Couche-Tard to reconsider its takeover bid, also referring to competition law concerns mainly in the U.S., although the company does not reject the offer and will continue to talk with the suitor, the source said.

The company's board will send a letter to Couche-Tard as early as Friday, according to the Nikkei business daily, which reported the news first.

The report noted news of Couche-Tard's approach for the global operator of the 7-Eleven convenience store chain, which would be the largest foreign takeover of a Japanese company, pushed Seven & i shares up almost 23% on Aug. 19.

A Seven & i spokesperson declined to comment, saying the company would not comment on market rumors. Seven & i, with a market valuation of about 5.6 trillion yen ($39-billion), previously said it formed a special committee to review the proposal, whose value or terms have not been disclosed.

Couche-Tard, which operates Circle-K convenience stores, is valued at about $52-billion.

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