Bass Pro Shop and Goldman Sachs' private equity arm were partnering on a bid for Cabela's, people familiar with the matter told Reuters.
On Tuesday, shares of Cabela's rose $3.14, or 6.4 percent, to $52.51 on the news.
Goldman will provide Bass Pro with the equity financing necessary to pursue Cabela's and was said to make such a deal more likely, given the potential cost savings and synergies a combination of the two U.S. largest hunt & fish retailers, Reuters said.
In December, Cabela's announced it had hired investment bank Guggenheim Securities LLC to explore strategic alternatives, including a sale. Cabela's has also been exploring selling its credit card business separately and received expressions of interest from other potential buyers, sources told Reuters. The moves follow pressure from Elliott Management Corp, an activist hedge fund.
Bass Pro faces competition in the buy from private equity firms although some PE firms have been reluctant to investi in firearms manufacturers and sellers of firearms due to concerns over irritating investors.
