Friday, February 10, 2017

Bass Pro Shop's $5.5 Billion Deal for Cabela's Inc Is Falling Apart

The wheels look like they're coming off the merger between Bass Pro Shops and Cabela's (NYSE: CAB). It appears the hurdles for successfully navigating the regulatory landscape are more hazardous than originally believed. Not only has the Federal Trade Commission sought more information about the transaction, delaying the potential closing deadline, but the regulatory request has jeopardized the sale of Cabela's financial arm to Capital One.

Still struggling with a changing retail landscape, Cabela's agreed last October to be acquired by privately-held rival Bass Pro Shops for $65.50 per share, or about $5.5 billion, including debt. It was a decent price for the outdoors retailer, representing a 19% premium to Cabela's closing price on Sept. 30, the day before the acquisition was announced. It was also a 40% premium to its closing price on Dec. 1 of the previous year, the day before Cabela's declared that it was exploring strategic alternatives. . . . more

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