Sources say Japanese retail giant Seven & i Holdings has decided it cannot accept a takeover bid from a Canadian firm at this point, as the buyout price is too low to match its corporate value.

The sources say Seven & i's board reached the decision after a special committee of independent outside directors presented a report on the bid on Thursday.

The company formed the committee in response to the proposal from Alimentation Couche-Tard, which runs convenience stores and gas stations around the world. Seven & i has a convenience store network both inside Japan and abroad.

The sources say the report contains the committee's evaluation of the two sides' business operations, as well as the upsides and downsides of accepting the bid.

Seven & i is seeking to explore what motivated the Canadian firm to make the proposal, and what interest it has in Japan's convenience store industry.

Seven & i is expected to convey its stance to Alimentation Couche-Tard and consider its response before making a final decision on whether to accept the proposal.