Cabela’s Inc., a retailer of hunting, fishing and camping supplies, jumped as much as 13 percent after Reuters reported that rival Bass Pro Shops is considering a bid.
Bass Pro, which is closely held, is working with an investment bank on a potential offer, Reuters said, citing people familiar with the situation.
The move followed a push by Cabela’s investor Elliott Associates for the company to explore its options, including a possible sale to a competitor or private-equity firm. Elliott disclosed an 11 percent stake in Cabela’s last month and said it would hold discussions with management.
Cabela’s shares rose as high as $44.85 on Thursday. The stock had been down 25 percent this year through Wednesday’s close, hurt by sluggish sales. The company delivered disappointing earnings in October, saying it was suffering from “significant weakness” in its fall apparel and footwear offerings.
Cabela’s and Bass Pro Shops didn’t immediately respond to requests for comment. Locally, there is a Cabela’s in north Fort Worth and a Bass Pro Shops in Grapevine.