Cabela's breaks silence, looks to "enhance shareholder value"

Cabela's announced Wednesday that the company's board of directors is beginning a process to "explore and evaluate a wide range of strategic alternatives to further enhance shareholder value."

There is no timeframe for the process, and the company said it wouldn't necessarily lead to a transition of ownership or any other changes.

"The board of directors and management team, working with advisers, plan to proceed in a timely and orderly manner, but have not set a definitive timetable for completion of this process," a media release explained. "There can be no assurance that this review process will result in a sale transaction or other strategic alternative of any kind."

Rumors about the future of the Sidney-based outdoor retailer began in October after an investment firm disclosed it owned 6 percent of Cabela's shares and holds options to purchase an additional 5 percent.

Elliott Management Corp., in a Securities and Exchange Commission filing, said Cabela's shares were undervalued and it wanted the company to consider changes to increase profitability.

As speculation about a possible takeover ensued, Cabela's remained silent on the topic. Wednesday's media release was the first public acknowledgment of possible changes at the company.

Cabela's CEO Tommy Millner, in the release, said the company still believes its "Vision 2020" strategy will position it well for the future.

"That said, the board is committed to taking actions to enhance value for shareholders and believes it is an appropriate time to explore potential strategic options that may drive further value," he said. "As the board undertakes this exploration process, Cabela's is focused on the execution of its business strategy and remains fully committed to serving our customers' needs."

The company didn't specify what changes could be coming, but did say its retail stores would be operating as normal during the holiday season.

"We are continuing to honor all of our commitments as usual," Millner said.

There have been no changes to Cabela's club points program, Visa cards or gift cards, he noted.

Cabela's is working with Guggenheim Securities as its financial advisor and Sidley Austin and Koley Jessen as its legal counsel to assist in the strategic review, the release states.

"The company does not intend to disclose developments or provide updates on the progress or status of this process unless it deems further disclosure is appropriate or required," the release adds.