CA­BELA’S TUM­BLES AS DEAL IN­SPECTED

The Denver Post - - BUSINESS -

Ca­bela’s Inc. suf­fered its worst stock de­cline in more than a year after warn­ing that its $5.5 bil­lion ac­qui­si­tion by Bass Pro Group faces ad­di­tional re­view by reg­u­la­tors.

Ca­bela’s has received a sec­ond re­quest for in­for­ma­tion from the Fed­eral Trade Com­mis­sion, ac­cord­ing to a reg­u­la­tory fil­ing. The com­pany also ex­pects a de­lay in the com­ple­tion of a sep­a­rate deal to sell its credit-card busi­ness to Cap­i­tal One Fi­nan­cial Corp.

The scru­tiny puts a cloud over a deal that promised an al­most 20 per­cent pre­mium to Ca­bela’s share­hold­ers when it was an­nounced in Oc­to­ber. The trans­ac­tion would unite two of Amer­ica’s largest out­doors re­tail­ers and ful­fill a wish by El­liott As­so­ciates, the ac­tivist in­vestor that had pushed Ca­bela’s to put it­self on the block.

The stock fell as much as 7 per­cent to $57.36 in New York on Fri­day, the big­gest in­tra­day de­cline since Oc­to­ber 2015. Be­fore the drop, Ca­bela’s had been up 32 per­cent this year.

An­titrust of­fi­cials is­sue sec­ond re­quests to de­ter­mine whether a merger harms com­pe­ti­tion. The re­quests are rou­tine and don’t nec­es­sar­ily sig­nal en­forcers will chal­lenge a deal. Ca­bela’s said it con­tin­ues to ex­pect the Bass Pro deal to clear in the first half of 2017.

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