Deadline for federal approval of Cabela’s buyout fast approaching

By Christen Smith

The Federal Reserve has until October 3 to approve a $5 billion merger between Bass Pro Shops and Cabela’s. (Photo: Columbus Dispatch)
Federal regulators have six weeks left to approve the consumer credit side of a pending merger between Bass Pro Shops and Cabela’s — otherwise investors worry the multi-billion dollar deal could fall through.
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 say 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.
“If Bass Pro doesn’t own Cabela’s by the October deadline, they should walk away,” Nathan Yates, an analyst following Cabela’s with Forward View Consulting in Virginia, told the North Platte Telegraph Thursday. “If it doesn’t walk away, then they’re going to demand a lower sales price.”
The Federal Reserve’s Oct. 3 deadline looms large over the merger, according to the newspaper. Hanging in the balance is the approval of the sale of Cabela’s consumer credit financing arm — World’s Foremost Bank — to a Georgia financial

Source: Guns.com