TA - TravelCenters of America holders should vote to approve BP deal proxy adviser says

2023-04-29 14:52:01 ET

TravelCenters of America ( NASDAQ: TA ) shareholders should vote to approve the company's planned $86 a share sale to BP Plc ( NYSE: BP ), influential proxy adviser ISS recommended.

The BP ( BP ) offer "presents higher certainty of completion, according to a Reuters report from Friday, which cited a ISS note.

The ISS recommendation comes as TravelCenters ( TA ) has repeatedly turned down a $92 a share rival offer from Arko ( NASDAQ: ARKO ). TA holders shareholders are scheduled to vote on the BP deal May 10 .

“The downside risk of BP walking away and Arko not being able to complete a deal likely is significant, and TA appears to have raised some legitimate concerns about Arko's financing commitments,” ISS said in the note, which was viewed by Reuters.

Arko ( ARKO ) on Tuesday appeared to admit that it may struggle to get a deal done for TravelCenters ( TA ).

"While we remain ready, willing and able to engage with TravelCenters, your continued refusal to engage with us has made it extremely difficult for us to see a path where we could conduct due diligence and complete the negotiation of a merger agreement in a manner that would enable you to timely terminate your merger agreement with BP in accordance with its terms and to enter into a merger agreement with us," Arie Kotler, Chairman, President & CEO of ARKO wrote in a letter to the TravelCenters ( TA ) board.

More on TravelCenters

• TravelCenters of America ticks higher as investor pushes for ARKO due diligence
• HSR waiting period expires for TravelCenters of America-BP deal

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