Lie Comments on Hostile Takeover of Iowa Company
General Stores went to federal court Friday in a bid to block the hostile takeover attempt by Alimentation Couche-Tard. A lawsuit filed in Des Moines accuses the Quebec-based convenience store chain of violating U.S. securities laws. Casey's alleges its unwanted suitor reaped "millions of dollars of profit in a classic 'pump and dump' scheme." Couche-Tard made a $1.9 billion bid for Casey's, and then after Casey's stock went up in price, Couche-Tard sold nearly 2 million Casey's shares for a profit. "I haven't seen anything like this before," University of Iowa finance professor Erik Lie said when asked both about Couche-Tard's behavior and Casey's response. "Maybe this is just part of the strategy of getting some attention to this among shareholders. It seems to me that (Casey's) is talking as much to the public and to the media as anyone else."