Alimentation Couche-Tard (Baa1/BBB+); shareholders urge 7-11 (A2/A) to consider deal

More headlines over the weekend this time from 7-11 shareholders Artisan Partners (US Asset Manager) asking seven and i to give updates and that the board would be "held accountable" if it doesn't negotiate. Reports from last week are seven and i were putting roadblocks up (through government protection). It's stock is brushing past that, up +25% from a fortnight ago.

ATD isn't the only one eyeing Japanese co's. Bain is fighting with KKR over software developer, Fuji Soft - recent reports have the bids up to a ~50% premium vs. Jan levels. JP Morgan has broader M&A in the country up 20% YTD - most of that domestic deals which it says is on a "fundamental shift in corporate governance in Japan, with greater accountability at the board level to drive shareholder value".

ATD brings earnings tomorrow after the close - we expect it will weigh in then. As we said before, we are not too concerned given co is a seasoned M&A operator with results to show for it. There is some added focus on this given the size though (near doubling).