Cabela’s Q2 report likely to be dominated by sale talk
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Cabela’s, the iconic North American-based outdoor gear and sporting goods chain, will announce its second quarter results tomorrow, but one topic is likely to dominate the presentation.
Speculation has hit fever pitch that the Sidney, Nebraska, retailer is about to be sold to its rival, Bass Pro Shops, following a story last week in the New York Post which reported that a deal was imminent.
Back in April, Reuters news agency said that privately-owned Bass Pro Shops, owned by entrepreneur Johnny Morris, had teamed up with Goldman Sachs to make a bid.
The prospect of a sale has been a constant subject of conjecture following the arrival last year of activist hedge fund investor, Elliott Management, which took an 11% stake in the business and has since been pushing for the sale of the company or its ancillary operations which include its credit card business.
Cabela’s and Bass Pro have refused to comment on the speculation although in December last year, Cabela’s announced that it was undertaking a strategic review of the business, which did not rule out the sale of parts or the whole of the company.