Casey's General says it's in talks with 7-Eleven

LOS ANGELES -- Casey's General Stores says it is in talks with 7-Eleven after receiving an unsolicited buyout offer from the convenience store operator.

Casey's said Thursday that 7-Eleven made the offer last week to buy the company that operates a chain of convenience stores in the Midwest for $40 a share in cash.

Casey's says its board of directors believes the company is worth substantially more than what Dallas-based 7-Eleven Inc. is offering, but opted to continue talks.

Casey's recently rejected a buyout offer worth $2.03 billion from Canadian convenience store operator Alimentation Couche-Tard as too low but agreed to further talks with the company.

Casey's is based in Ankeny, Iowa.