Cabela’s stock surges after feds approve credit buyout

By Christen Smith

The Federal Reserve green lit the sale of Cabela’s financing arm to Synovus Bank Wednesday, meaning the $5 billion merger between the Nebraska-based outdoor retailer and rival Bass Pro Shops will go forward. (Photo: Dale Sparks/AP Photo)
Federal regulators approved part of the pending Cabela’s multi-billion dollar merger with Bass Pro Shops Wednesday, sending its share prices up more than 14 percent in after hours trading.
With the Federal Reserve’s green light on Cabela’s sale of its consumer credit financing arm — World’s Foremost Bank — to Synovus Financial Corp, out of the way, the $5 billion buyout deal can proceed.
Bass Pro Shops bought Cabela’s in October for $5.5 billion, or $65.50 per share. Later the Missouri-based sporting goods chain restructured the deal for a lower share price of $61.50.
After Cabela’s weak second quarter sales, however, investor analysts cautioned the retailer could be desperate to close the deal, while Bass Pro Shops may see its former competitor’s tumbling stock as a cost-saving opportunity. All eyes turned to the fast-approaching Oct. 3 deadline from the feds to approve the credit sale to Synovus, who will subsequently sell the operation to Capital One, while keeping $1.2 billion in deposits.
The positive market response is good news for the outdoor

Source: Guns.com