The shares for Cabela’s Inc have been dropping and shareholders are becoming quite concerned. The purchase of Cabela’s by Bass Pro Shops for initially $5.5 billion has been halted due to the Federal Trade Commission (FTC). That figure of $5.5 billion has been adjusted to $4.5 billion now as well. In writing that may not seem like a big deal, but ask any shareholder if they would rather see it sell for one billion dollars more. I think you would know their answer.

What the FTC fears is that there would be too much consolidation (or a small monopoly) in the outdoor sporting goods market. If the merger goes through Cabela’s/Bass Pro Shops would effectively control roughly 20% of their respective market.

The FTC formally has issued a 2^nd request to review the proposed transaction. Since Cabela’s is a publically traded company they are also regulated by the Securities and Exchange Commission (SEC). As a result, Cabela’s has to publically disclose their internal workings to shareholders and the general public.

To throw an additional wrench in the completion of the purchase of Cabela’s by Bass Pro Shops, Capital One is separately buying the Cabela’s line of credit cards. That was and still is a huge money maker for Cabela’s, but adds more complexity to the sale of their company. The credit card line purchase by Capital One was to be prospectively completed in October 2017 this year. That timeline still appears to be accurate, but Bass Pro Shops merger with the Cabela’s line of stores will be slowed as a result.

In sum, the FTC wants another look at the paperwork surrounding the Cabela’s/Bass Pro Shops merger. Capital One is still poised to buy the Cabela’s branded credit cards. What remains to be seen is when all these pieces will fall into place. Until then, shareholders of Cabela’s are hoping the bleeding stops sooner rather than later.