Cabela's may be hunting for a buyer

[priell3]

OMAHA, Neb. (AP) - Cabela's, the outdoor sporting goods chain known for its elaborate in-store wildlife displays, may be seeking a buyer.

The retailer has been under pressure since late October when the investment firm Elliott Management started pushing for money-generating maneuvers from Cabela's, possibly the sale of its credit card unit or the entire company. Elliott owns 6 percent of Cabela's shares and holds options to buy another 5 percent.

The company has been attempting to cut spending due to weak sales and in September it laid off 70 people, eliminating about 4 percent of its corporate workforce.
Cabela's has its headquarters in Sidney, Nebraska, a town with a population of less than 7,000. Cabela's accounts for almost a third of that number in jobs.

CEO Tommy Millner said in a written statement that Cabela's continues to honor its commitments and that it remains focused on its business.
Millner, who has led Cabela's since 2009, said the company's board maintains faith in its current strategy, but will consider other options.

"The Board is committed to taking actions to enhance value for shareholders and believes it is an appropriate time to explore potential strategic options that may drive further value," Millner said.
Stifel analyst Jim Duffy said he thinks Cabela's stock continues to be undervalued because the credit card unit alone is worth between $38 and $40 a share. Duffy said both private equity firms and competitors might be interested in buying Cabela's.
The entire retail sporting goods sector has been under pressure for some time.

Shares of Dick's Sporting Goods Inc., Hibbett Sports Inc. and Big 5 Sporting Goods Corp. are all down between 20 percent and 35 percent over the past year. In that regard, Cabela's has fared better.
Shares of Cabela's Inc., of which the founding family still holds a nearly 24 percent stake, are down 11 percent this year. But they've risen more than 18 percent in the last month on speculation of a buyout.

The company was founded in 1961 when Dick Cabela started selling fishing flies through the mail from his kitchen table with his wife, Mary, and brother, Jim.

Read more at http://www.philly.com/philly/busines...1wF3vGg7qhy.99

[streaker69]

Dick's is always looking to expand.

[free]

Dick's is always looking to expand.

i am always wary of expanding dicks. Besides which, Dick's is always looking for a hole in the market to exploit.

[wanneroo]

Cabela's has been a profitable company and it's only this investment firm that is making trouble.

I saw the same thing with Cracker Barrel and this outside guy was trying to buy in that had all these retarded ideas to ruin the Cracker Barrel business. They had to fight him off tooth and nail and it looks like not only was Cracker Barrel management right and him wrong but the business is better than ever. I think he finally got the message and buggered off.

[Noah_Zark]

OMAHA, Neb. (AP) - Cabela's, the outdoor sporting goods chain known for its elaborate in-store wildlife displays, may be seeking a buyer.

The retailer has been under pressure since late October when the investment firm Elliott Management started pushing for money-generating maneuvers from Cabela's, possibly the sale of its credit card unit or the entire company. Elliott owns 6 percent of Cabela's shares and holds options to buy another 5 percent.

Sheesh. 5% ownership stake? Talk about the tail wagging the dog.

This sounds like a bunch of under-30 "Management by Spreadsheet" MBA types at Elliott totally focused on their "models" based on erroneous assumptions.

Noah

[phillyd2]

Investors invest to make their money grow. If it does not grow enough in one investment then it's thier duty to move on to another. What some consider 'trouble' others call free market capitalism.

6% in a public company is actually a decent share, depending how the rest is decided.