Deals
Cabela's Investors Say They'd Want $60 a Share or More in Buyout
- Outdoor retailer being pushed by activist to consider sale
- One shareholder says it would take $72 price to get his vote
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Cabela’s Inc. is attracting takeover interest at a per-share price range in the $50s, people familiar with the discussions said last week. But it may take significantly more than that to satisfy some longtime investors.
Though Cabela’s sales and profit growth have sputtered, shareholders such as London Co. of Virginia and the Matthew 25 Fund -- owners of an almost 7 percent stake combined -- see a strong brand with long-term expansion prospects. The chain, which sells hunting and camping supplies, also has a lucrative credit-card business with almost $5 billion in loans, as well as real-estate holdings worth about $1 billion. The company’s total market value is $3.2 billion.