NY Post : FTC review to delay Cabela’s-Bass Pro merger

The merger of Bass Pro Shops and Cabela’s has hit a speed bump.

The Federal Trade Commission has asked Bass Pro Shops for more information on its $5.5 billion merger with Cabela’s, a move that is likely to hold up the deal for several months, The Post has learned.

Regulators this week needed to let the leading outdoors retailers know if they were prepared to clear the October merger after their first review.

They told the parties they are still hunting for more details about how the deal will impact competition, commonly referred to as a second request, two sources close to the situation said.

“The regulatory process will now take more than another month or two,” a source said.

Bass Pro has agreed to pay Cabela’s $65.50 a share. Cabela’s shares have risen from $60.65 on Nov. 14 to close Monday at $62.47 on the expectation the deal could close this week.

Cabela’s, though, on Oct. 26 set less optimistic expectations saying on an analyst call that the deal was expected to be completed in the first half of 2017.

In a confidential Bass lender presentation Bass said 45 percent of Bass Pro customers also shop at Cabela’s.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: SCVL -13.4%, SOL -7.6%, MTL -5%, FRO -1.7%, MNK -0.5%

Select metals/mining stocks trading lower:
  • HMY -5.3%, SBGL -4.2%, GFI -3.6%, CLF -3.6%, VALE -3.3%, FCX -3%, AU -2.4%, GDX -2%, AG -2%, PAAS -2%, HL-1.8%, ABX -1.8%
  • RIO -1.6%, IAG -1.6%, NEM -1.6%, BHP -1.4%, BBL -1.3%, MT -0.9%, GLD -0.9%
Select oil/gas related names showing early weakness: WLL -2.6%, OAS -2.4%, SDRL -2%, RIG -1.2%, HAL -1.1%,RDS.A -0.8%, CHK -0.8%

Other news:
  • NVLS -54.7% ( Phase 2 trial evaluating efficacy and safety of two doses of cavosonstat failed to demonstrate benefit in absolute change in percent predicted FEV1 or in sweat chloride reduction at 12 weeks)
  • FOLD -26.7% ( announces U.S. regulatory pathway for Migalastat for Fabry Disease)
  • GLBS -7.6% (after stock doubled on Monday)
  • BOJA -6.3% ( announces a 6 mln share underwritten public offering of common stock by selling shareholders )
  • TCBI -3.8% (prices 3.0 mln shares of common stock for gross proceeds of $210.0 mln )
  • COTV -3.5% ( commences 10 mln common stock offering by selling stockholders)
  • BIP -3.5% (light volume; Brookfield Infrastructure announces $750 million equity offering)
  • FDUS -3.4% (commences registered public offering of 2.5 mln shares of common stock through an underwritten public offering)
  • SITE -3.1% (ticking lower; commences 8 mln common stock offering by selling stockholders Clayton, Dubilier & Rice, LLC, and Deere & Company)
Analyst comments:
  • AKS -3.5% (downgraded to Neutral from Outperform at Macquarie)
  • X -3% (downgraded to Hold from Buy at Argus)
  • RS -1.3% (downgraded to Neutral from Outperform at Macquarie)
  • MCD -0.8% (removed from US Focus List at Credit Suisse)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: THO +8.6%, TIF +5.1%, BERY +4.6%, UNH +3.2%, ZTO +2.6%, BNS +1.3%

M&A news: RMAX +1.4% (light volume; acquires the Master Franchise for the Georgia, Kentucky/Tennessee, and Southern Ohio Regions; terms not disclosed)

Select financial related names showing strength: DB +2.8%, PUK +1.6%, ING +1.3%, CS +0.8%, LYG +0.7%

Other news:
  • CYTR +42.9% (announces 'positive' updated results from its pivotal Phase 3 clinical trial evaluating aldoxorubicin)
  • CBMX +29.6% (announces that its pre-implantation genetic screening by next generation sequencing test has received conditional approval from the New York State Department of Health)
  • VBLT +22% (announces top-line results from its exploratory Phase 2 study of VB-111g)
  • MNTA +12.2% (Phase 3 clinical study of M923 in patients with moderate-to-severe chronic plaque psoriasis, met its primary endpoint)
  • OCUL +11.8% (to present at Piper Jaffray Healthcare Conference tomorrow)
  • KNDI +6.9% (received a second subsidy payment of RMB 100 million)
  • P +5% (Pete Najarian in the 'Final Trade' segment of CNBC's Fast Money program pointed out 'huge call buying' that occured late in yesterday's session)
  • TIVO +3.9% (TiVo and Netflix enter into product and intellectual property agreements)
  • PZRX +3.5% (following 150% move higher on Monday)
  • ARIA +3.3% (FDA has granted Iclusig full approval)
  • SAN +1.6% (receives ECB decision for 2017 capital requirements; must maintain CET1 ratio of 7.75%)
  • BT +1.1% (appoints Chairman of Openreach; provides response to Ofcom statement)
Analyst comments:
  • BCS +2.8% (initiated with an Outperform at Credit Suisse)
  • ONVO +2.2% (initiated with a Buy at Evercore ISI)
  • FIT +1.5% (Longbow out positive following FIT's strong showing this holiday weekend)
  • PFE +0.9% (upgraded to Overweight from Equal Weight at Barclays)