Reuters is reporting that sources who asked not to be identified say Bass Pro Shops is exploring an offer for Cabela's, the U.S. hunting and fishing store chain targeted by activist investor Elliott Management.
Bass Pro is working with an investment bank on the potential offer, people “familiar with the matter” told Reuters last week.
Cabela's has recently begun to explore its options and also has reached out to private equity firms to solicit interest, according to the wire service.
The sources asked not to be identified because the deliberations are confidential, Reuters said.
Bass Pro Shops spokesman Jack Wlezien told Trade Only in an email: “We are aware of recent media speculation and our policy is not to comment on market rumors.” Cabela’s did not respond to a request from Reuters for comment.
Elliott disclosed an 11 percent stake in Cabela's last month and called for it to explore strategic alternatives, including a sale to a private equity firm, Reuters said.
Cabela's manages retail stores in the United States and Canada. The stores are known for their museum-quality experience, offering taxidermy, a pond and other attractions. The company also runs a credit card business through its wholly owned subsidiary, World's Foremost Bank.
Bass Pro bought Fishing Holdings LLC, the builder of Ranger Boats, Stratos and Briton brands, earlier this year.