SIDNEY, Neb. (KNEP) - The failure of a credit card deal could spell more trouble for the proposed purchase of Cabela's by Bass Pro Shops.
At the end of 2016, Cabela's disclosed in a U.S. Securities and Exchange Commission filing that Capital One indicated federal approval of their purchase of Cabela's credit card division was anticipated to go through, but wasn't likely to be completed by this October.
Now, records with the Office of Comptroller of the Currency indicate that Capital One withdrew their application to purchase 'World's Foremost Bank' at the end of January. The sale of the Cabela's credit card operation was considered a key component to the merger with Bass Pro.
In last December’s SEC filing, Cabela's said it was pursuing alternative strategies to ensure the merger could go through by an October 3rd deadline, the date by which either Bass Pro Shops or Cabela’s could walk away from the deal.
Cabela's stock value has dropped about 23% since mid-December. On Dec. 13, 2016, Cabela’s stock closed at $62.96 a share; at the end of trading Feb. 15, 2017, the price closed at $48.54.