Cabela’s Inc. suffered its worst stock decline in more than a year after warning that its $5.5 billion acquisition by Bass Pro Group faces additional review by regulators.
Cabela’s has received a second request for information from the Federal Trade Commission, according to a regulatory filing. The company also expects a delay in the completion of a separate deal to sell its credit-card business to Capital One Financial Corp.
The scrutiny puts a cloud over a deal that promised an almost 20 percent premium to Cabela’s shareholders when it was announced in October. The transaction would unite two of America’s largest outdoors retailers and fulfill a wish by Elliott Associates, the activist investor that had pushed Cabela’s to put itself on the block.
The stock fell as much as 7 percent to $57.36 in New York on Friday, the biggest intraday decline since October 2015. Before the drop, Cabela’s had been up 32 percent this year.