TOKYO, Jan 9 (Reuters) - Japan's Seven & i Holdings ( SVNDF )

, operator of the 7-Eleven convenience store chain, said

quarterly operating profit fell by a quarter, missing analysts'

estimates, as inflation hit consumer spending in Japan and North

America.

The poor showing adds to pressure on the sprawling retailer

to demonstrate it can improve corporate value as it fends off a

proposed $47 billion buyout offer from Canada's Alimentation

Couche-Tard ( ANCTF ) .

Profit tumbled to 128 billion yen ($810 million) in the

three months to end-November, short of an average estimate of

138 billion yen from seven analysts polled by LSEG.

After ACT's bid, the group's founding family started talks

to take the company private for an estimated $58 billion, which

would be the largest management buyout in Japanese history.

This would allow the group to continue under current

management and relieve pressure to offload unprofitable assets.

Some analysts have also said it may be a gambit to induce a

higher bid from ACT.

The firm has also hastened plans to focus on its convenience

store business by selling a range of non-core assets, among them

several supermarket chains and specialist retailers.

In October, Seven & i ( SVNDF ) announced it would create a separate

business unit - York Holdings - to house 31 subsidiaries, for

which it would solicit external investment before an eventual

public offering.

Last month, it concluded the first round of bidding for the

assets, with private equity giants Bain Capital and KKR

each offering over $5 billion, sources said.

Seven & i ( SVNDF ) retained its profit forecast of 403 billion yen

in the year to the end of February. Last October, it lowered its

forecast from 545 billion yen as inflation looked set to

continue to hit customer spending.

($1=158.1400 yen)