There have been reports that outdoors retailer Bass Pro Shops is exploring an offer for Cabela’s Inc.
On Thursday, Reuters reported, citing people familiar with the matter, that Bass Pro is working with an investment bank on the potential offer. Cabela's has recently begun to explore its options and has also reached out to private equity firms to solicit interest.
Reuters said its sources asked not to be identified because the deliberations are confidential.
According to Bloomberg Business, the move followed a push by Cabela’s investor Elliott Associates for the company to explore its options, including a possible sale to a competitor or private-equity firm. Elliott disclosed an 11 percent stake in Cabela’s last month and said it would hold discussions with management.
Cabela’s shares rose $4.03 to $43.56 on Thursday. But Bloomberg reported that the stock is still down more than 17 percent this year, hurt by sluggish sales. The company delivered disappointing earnings in October, saying it was suffering from “significant weakness” in its fall apparel and footwear offerings.
Bass Pro Shops declined comment, while Cabela's did not respond to a request for comment, Reuters reported.