By Colin Kellaher

TravelCenters of America Inc. on Monday said it is sticking with its agreement to be acquired by U.K. energy giant BP PLC after holding talks with ARKO Corp., which is looking to upend the deal with a higher offer.

TravelCenters, which in February agreed to be acquired for $86 a share by BP, said it received a waiver from BP to engage with ARKO, which has offered $92 a share for the Westlake, Ohio, operator of the TA, Petro Stopping Centers and TA Express travel-center brands.

TravelCenters said that following talks with ARKO, its board reaffirmed that the Richmond, Va., fuel-station operator's bid isn't superior to the BP deal nor could it reasonably be expected to lead to a superior proposal.

TravelCenters said ARKO plans to finance its proposed acquisition "through an amalgamation of uncommitted funding sources, including by entering into unnegotiated new and expanded credit facilities, entering into unnegotiated sale and leaseback transactions at unrealistic high real estate valuations and using unavailable TA cash."

TravelCenters shareholders are scheduled to vote on the BP deal at a special meeting on May 10, with the deal slated to close on May 15 if investors approve it.

TravelCenters shares, which closed Friday at $88.02, slipped 1.6% to $86.63 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

April 24, 2023 07:37 ET (11:37 GMT)

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