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Alimentation Couche-Tard (Baa1 / BBB+) Will use debt on 7-11 (A2/A) acquisition (bbg)

CONSUMER STAPLES
  • Bloomberg has internal sources saying "plans to issue debt and tap its pension shareholders for funding in order to finance a proposed deal". Hardly a surprise given cash shortfall of ~$57b.
  • Seven & I is holding onto gains this week at +20% vs. pre-offer news - but as sources have reported turning down the deal may require equity pay-outs as substitute to appease shareholders. Adding to that it is coming out of relatively lows.

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