7-Eleven vies with Couche-Tard for Casey's

America's largest convenience store chain, 7-Eleven, was identified Wednesday as the mystery suitoreyeing Casey's General Stores,pitting it against Canada's Alimentation Couche-Tard.

The Wall Street Journal identified 7-Eleven as thecompetingbidder for Iowa-based Casey's, citing unnamed sources familiar with the matter.

The competition for Casey'sputs Couche-Tard, which has 5,869 convenience stores in North America, against a much bigger foe. Texas-based 7-Elevenis part of an international chain of convenience stores owned by Seven & i Holdings Co. of Japan.

It has about 38,000 stores around the world, including about 457 in Canada at the beginning of this year.

The Dallas-based North American unit had sales of $16.7billion US last year and has about 6,000 owned, operated and franchised stores in the United States.

The news comes as Couche-Tard said it wouldsell 25 stores and gas stations in the U.S. Midwest to meet antitrustconcerns if it canacquire Casey's for about $2 billion US.

The Montreal-based operator reached an agreement with staff of the U.S. Federal Trade Commission, subject to final approval by FTC commissioners and assuming the Canadian company succeeds in its hostile takeover.

The locations would be sold within an undisclosed time period following the closing of the acquisition, whichfaces staunch opposition from Casey's board, which has said the price is too low.

"The agreement with the FTC staff is another step towards making the combination of Couche-Tard and Casey's a reality," Couche-Tard president and CEO Alain Bouchard said in a statement.

Moot point?

The agreement with the competition agency may be moot since Casey's has rejected Couche-Tard's $38.50-a-share offer and opted instead to negotiate overthemystery suitor's offer of$40 a share.

Earlier this week, the board of Casey's, which operates 1,533 locations, mostly in small towns in the U.S. Midwest, recommended shareholders spurn the recently sweetened offer fromCouche-Tard while it digestedthe new higher offer.

The company said it still considered both bids well under value, but would explore the new transaction in hopes of getting a deal done.

On the Toronto stock market Wednesday, Couche-Tard shares dropped 27 cents to $23.19 Cdn.