http://www.bidnessetc.com/69887-cabelas-cab-stock-surges-goldman-bass-pro-shops-gear-acquisit/
2 replies (most recent on top)
Rumors I hear say the bank sale is a done deal, they are just waiting for the final paperwork on the sale of retail before making announcement.
Cabelas Inc (CAB) Stock Surges as Goldman, Bass Pro Shops Gear up for Acquisition
Retail By Muhammad Saad Khan
Jun 2, 2016 at 4:19 pm EST
Cabelas Stock Surges as Goldman, Bass Pro Shops Gear up for Acquisition
Goldman Sachs Capital and Bass Pro Shops are likely to acquire Cabelas, which caused its stock to shoot up over 8%
Cabelas Inc. (NYSE:CAB) shares shot up significantly after 12 PM EDT today, and surged as much as 8.27% two hours later, after New York Post announced that Goldman Sachs Capital Partners, which has teamed with Bass Pro Shops, are favorites to win the auction for the company. CAB stock is up over 7% during the midday trading hours.
According to the publication, the Wall Street giants are one of the top contenders and favorites to buy the $3.3-billion hunting and fishing retailer. In addition to this, KKR & Co. L.P. has also shown interest in the company.
Earlier, the company lost the investors’ confidence due to its sales, which caused CAB shares to drop almost 9% in May. On the other hand, Cabelas found a purchaser for its credit-card business, which contributes about 30% to the total revenue. The fishing equipment retailer looks forward to sign a deal at the same time as it reaches an agreement to sell 27 of its stores.
Moreover, Cabelas and Brass Pro Shops are almost the same size. Their amalgamation will result in a fishing and outdoor retailer giant, which is likely to generate an estimated $7 billion in sales.
The company was under constant pressure from investor Paul Singer’s Elliot Management hedge fund, which purchased an 11% stake earlier, and insisted that it should examine options to boost its share price. However, the auction was slower than usual as Cabela’s owns all the real estate, and has been valuing the land in order to convince potential suitors. However, according to the sources, it now considers the idea to sell the business to Bass Pro Shops, despite having resisted the idea in past.
Following New York Post’s report, CAB shares, which have gained almost 12% value so far this year, rose 7.37% to trade at $52.18, just before the closing bell. About 1.98 million shares swapped hands today, as opposed to the daily average of 475,082 shares.