Report: Bass Pro Shops Working On Potential Deal For Cabelas

• Privately owned Bass Pro Shops is said to be in talks to acquire Cabelas Inc (NYSE: CAB).
• Shares of Cabelas spiked higher by more than 8 percent following a report by Reuters.
• A Bass Pro Shops spokesperson confirmed with Benzinga it is aware of the report, but it is company policy not to comment on speculation.

Shares of Cabelas spiked higher by more than 8 percent Thursday after Reuters reported that the company is believed to be an acquisition target by privately owned Bass Pro Shops.

Reuters reported on Thursday that the outdoors retailer is exploring an offer to acquire Cabela, a specialty retailer and direct marketer of hunting, fishing, camping, and other outdoor merchandise. The publication cited sources familiar with the deal who said that Bass Pro is working with an investment bank.

Cabela has started to explore strategic options and has reached out to private equity firms to explore a buyout, according to the report. The company has also been a target of activist investor Elliot Management who acquired an 11 percent stake in Cabela in late October.

The activist investor pushed Cabela to pursue a sale and go private.

Cabela's business also includes a credit card segment through a wholly owned subsidiary, World's Foremost Bank.

Benzinga reached out to Bass Pro Shops. A spokesperson replied that the company is aware of media reports that might be working with bankers to acquire Cabelas, but fell short of confirming the deal, noting that it is company policy not to comment on speculation.

Shares traded recently at $42.85, up 8.3 percent.