Tuesday, February 21, 2017

Cabela's Deal Is Salvageable and Pessimism Is Overdone

Image result for cabela's and bass proIt's been a little over four months since outdoor-gear retailer Cabela's Inc. agreed to a $5.5 billion takeover by closely-held rival Bass Pro Shops at a mammoth premium, valuing it at $65.50 apiece. Since then, it has slipped more than 26 percent from its post-offer peak to as low as $46.28 on Wednesday because the deal, once a sure thing, is now anything but.

But if a transaction is completed, even at a renegotiated price, the stock is arguably trading at steeper discount than it deserves. Which will it be?

Here's why shareholders are rightly concerned:
. . . more

No comments: