Cabela's Hit with Securities Lawsuit Over Proposed Acquisition

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Cabela’s, Inc. and its board of directors are facing claims that they released misleading information in a proxy statement regarding the acquisition of the company by Bass Pro Group, LLC. The agreement between the two companies proposes that stockholders will receive $61.50 cash per share of Cabela’s common stock in a transaction valued at approximately $5 billion, according to the complaint. In a proposed class action lawsuit, one investor argues that the defendants failed to disclose to stockholders essential information regarding the figures used by the company’s financial advisor to determine the company’s financial projections and the fairness of the deal. The plaintiff alleges that following alterations to the transaction involving complications with Cabela’s wholly owned bank subsidiary, the company failed to provide full disclosure of the analyses used to arrive at the final proposal. He says stockholders are entitled to receive all the information they need to determine whether to vote for the deal.