Quick update on where Cabela’s stands, namely the buyout pressure.
- It started exploring strategic alternatives in Dec. after Elliott Management took an 11% stake last year (Oct.). The company might be looking to sell parts or all of the company. As we’ve said before, the natural path is to sell off its credit card operations (Words Foremost Bank) first.
- It also changed its board nomination process last month; changing the timeframe from 150 days before the annual shareholder meeting (held early June last year) to just 40 days.
- Early Feb. it put Scott Williams from CCO to President and separated out the CEO and President role.
- Chairman Jim Cabela revealed he’s put 11 million shares – nearly his entire stake in the company – into a trust. Presumably to avoid taxes under a change of control.
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