June 20, 2017 (Shareholders Foundation) - An investor, who currently holds shares of Cabelas Inc (NYSE:CAB), filed a lawsuit in effort to halt the proposed takeover of Cabelas Inc. by Bass Pro Shops for $65.50 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:CAB stockholders by agreeing to sell Cabelas Inc cheaply via an unfair process to Bass Pro Shops.

On October 3, 2016, Bass Pro Shops and Cabelas Inc (NYSE:CAB) announced that they have entered into an agreement under which Bass Pro Shops will acquire Cabelas Inc (NYSE:CAB) for $65.50 per share in cash, representing an aggregate transaction value of approximately $5.5 billion.

On April 17, 2017, Cabelas Inc announced that it has entered into agreements with subsidiaries of Synovus Financial Corp. (NYSE:SNV) and Capital One Financial Corporation (NYSE:COF) (“Capital One”) (the “Bank Transaction Agreements”) in connection with the sale of the assets and liabilities of Cabela’s wholly owned bank subsidiary, World’s Foremost Bank (the “Bank”). Cabela’s also announced that it has amended the terms of the definitive merger agreement signed on October 3, 2016, under which Bass Pro Shops will acquire Cabela’s (the “Amended Merger Agreement”). Under the Amended Merger Agreement, Bass Pro Shops will acquire Cabela’s for $61.50per share in cash, representing an aggregate transaction value of approximately $5.0 billion.

However, plaintiff claims that the proposed consideration NYSE:CAB shareholders will receive is grossly inadequate and undervalues Cabelas Inc. Cabelas Inc reported that its Total Revenue rose from over $3.64 billion for the 52 weeks period that ended on December 27, 2014 to over $3.99 billion for the 53 weeks period that ended on January 2, 2016. In addition, the plaintiff alleges that the process is also unfair NYSE:CAB stockholders.