Seven & i shares give up some gains after Couche-Tard bid By Reuters

TOKYO (Reuters) -Shares of Japan’s Seven & i Holdings fell more than 7% in morning trade on Tuesday, giving up some of their gains from the previous day, when they surged on news of a takeover proposal from Canada’s Alimentation Couche-Tard.

While the value of the offer has not been disclosed, it would make the 7-Eleven owner the largest-ever Japanese target of a foreign buyout. Couche-Tard owns the Circle-K chain of convenience stores.

Seven & i said it has set up a committee composed only of independent directors to review Couche-Tard’s proposal which includes buying all of the company’s outstanding shares.

The Canadian company confirmed a “friendly proposal” was sent to Seven & i, adding it was focused on reaching a mutually agreeable transaction.

Jefferies said in its research note that Seven & i’s decision to set up an independent committee was positive. But it added that “hurdles remain on the scale of the transaction and antitrust issues”.

By late morning, Seven & i shares were down 7.3%, after losing more than 12% shortly after the open, and making them the biggest percentage loser on the .

On Monday, the news of the deal sent Seven’s shares surging by almost 23% in Tokyo, valuing the retailer at around 5.6 trillion yen ($38 billion).

Couche-Tard, which operates Circle-K convenience stores, is valued at roughly $58 billion.

($1 = 146.2800 yen)