(Neb)-Price Of Cabela's Buyout Dropped
SIDNEY, Neb - The sale of Sidney-based Cabela's to rival outdoor gear retailer Bass Pro Shops has been tweaked, making it less-expensive for Bass Pro and reducing concerns by regulators about Cabela's credit card unit.
Cabela's CEO Tommy Millner said Monday the changes make the deal more certain and that both companies now expect it to close during the third quarter of this year.
The deal was announced last fall as $4.5-billion dollars plus assumption of a billion dollars in debate, based on a price of $65.50 per share, but Cabela’s said Monday that Bass Pro will instead pay $61.50 per share, or $4.2 billion. No reason was given for the change.
Cabela’s also said Georgia regional bank Synovus will now buy its World's Greatest Bank credit-card unit and act as a middleman for planned buyer Capital One.
Terms of the bank deal haven't been released other than to say Synovus will buy the credit-card unit from Cabela's, then sell it to the banking giant while keeping the unit's $1.2-billion dollars in deposits.
Capital One had said banking regulators questioned the original deal over an unrelated issue.
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