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Bass Pro Shops explores bid for Cabela's, sources say

Privately held outdoors retailer Bass Pro Shops is exploring an offer for Cabela's Inc., the U.S. hunting and fishing store chain targeted by activist investor Elliott Management, people familiar with the matter said.

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A customer stops to check the advertisement of sale items inside a Cabela's store on the shopping day dubbed "Black Friday" in Forth Worth, Texas November 27, 2009. (REUTERS/Jessica Rinaldi)

Privately held outdoors retailer Bass Pro Shops is exploring an offer for Cabela's Inc., the U.S. hunting and fishing store chain targeted by activist investor Elliott Management, people familiar with the matter said.
Bass Pro is working with an investment bank on the potential offer, the people said this week. Cabela's has recently begun to explore its options and has also reached out to private equity firms to solicit interest, the people added.
The sources asked not to be identified because the deliberations are confidential. Bass Pro Shops declined comment, while Cabela's did not respond to a request for comment.
Cabela's manages retail stores in Canada and the United States, including a store in Mitchell.
The stores are known for their museum quality experience, offering taxidermy, a pond and other attractions.
Representatives from the Mitchell Cabela’s store declined to comment on the report Thursday and referred questions to the corporate office. The corporate office did not immediately return calls seeking comment.
The Mitchell Cabela’s, located in south Mitchell, opened in 2000.
Shares of Sidney, Nebraska based Cabela's jumped as much as 13 percent on the news, giving it a market capitalization of around $3 billion.
Last month, Elliott disclosed an 11 percent stake in Cabela's and called for it to explore strategic alternatives, including a sale to a private equity firm.
Cabela's also runs a credit card business, through its wholly owned subsidiary, World's Foremost Bank.
Springfield, Missouri-based Bass Pro Shops was founded in the 1970s by Johnny Morris. Bass Pro has stores in the United States and Canada, as well as several in-store wild game and seafood restaurants.

Related Topics: CABELASRETAIL
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