Deals
Cabela's Shares Soar After Activist Elliott Takes 11% Stake
- Elliott sees options including sale, management changes
- Cabela's looking to diversify merchandise, customer base
A Cabela's employee brings out boxes during set up of a store in Thornton, Colorado.
Photographer: RJ Sangosti/The Denver Post via Getty ImagesThis article is for subscribers only.
Cabela’s Inc., a retail chain that sells hunting, fishing and camping supplies, rose the most in five years after activist investor Elliott Associates disclosed an 11 percent stake in the company and said it may push for a shake-up or leveraged buyout.
Cabela’s shares are “significantly undervalued,” Elliott said in a filing on Wednesday, sending the stock up 17 percent to $39.26 at the close of trading in New York -- the biggest gain since Nov. 2, 2010. The retailer, based in Sidney, Nebraska, was valued at $2.32 billion as of Tuesday’s close.