(Neb)-FTC Oks Cabela's Sale
SIDNEY, Neb. (AP) - Cabela's time as an independent company is nearer the end with an ok this week by antitrust regulators of a buyout offer from Bass Pro Shops. The Sidney-based outdoor outfitter says the Federal Trade Commission signed off on the $4.2-billion dollar purchase deal on Monday.
All that's left now is formal approval by stockholders and since Bass Pro is privately owned, that leaves it up to Cabela's shareholders who are set to vote at the company's annual meeting next Tuesday.
The purchase, which is expected to close by the end of September, is also contingent on the successful sale of Cabela's financial unit to Georgia-based Synovus Financial and Capital One Financial.
Capital One will buy Cabela's credit card business while Synovus will acquire the assets and deposits of World's Foremost Bank. The original plan called for Capital One to buy both the credit card and banking operations, but ran into regulatory hurdles, leading to a revised plan in April.
The revised deal dropped the purchase price for each Cabela's share from $66.50 to $61.50, which is $1.60 a share more than the market price this morning.
Bass Pro Shops has about 100 stores and 20,000 employees while Cabela's has 19,000 employees and 85 stores in the U.S. and Canada. When the two rivals announced their plans to merge, Bass Pro founder and CEO Johnny Morris said the company would keep the Cabela's brand
Morris has not made clear how much of Cabela's headquarters operations will remain in Sidney or how many of those jobs will either be eliminated or move to Bass Pro's corporate headquarters in Missouri.
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