Market Overview

Report: Cabelas Said To Be Eyeing A Sell Of Its Credit Card Business

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Shares of Cabelas Inc (NYSE: CAB) were trading higher by 2.4 percent at $40.75 Friday morning after reports suggested that the company is exploring a sale of its credit card business prior to putting up the entire company for sale.

The New York Post, citing sources, reported that Cabelas is looking to sell its "highly profitable" credit card business. However, the company is looking for a deal that allows it to retain the profit stream from the business. By doing so, this would relieve Cabelas of regulatory oversight and increase its profits.

Shares of Cabelas were trading higher by more than 3 percent shortly after Friday's opening bell.

Cabelas credit card operation generates about 30 percent of the company's $3.6 billion in sales, the report added.

Finally, the New York Post further suggested that Cabelas decision to put the entire company for sale will "become clearer" in about two months.

Posted-In: CA cabela's Cabela's Credit Card New York PostNews Rumors Movers

 

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