Vista Outdoor stock rises on Colt CZ merger offer
Shares of Vista Outdoor (VSTO), a sporting goods and ammunition company, climbed after firearm manufacturer Colt CZ submitted a bid for a merger. This follows Vista's October deal to sell its sporting goods business to Czech industrial technology firm Czechoslovak Group.
Yahoo Finance's Brad Smith and Seana Smith break down the details of this trending ticker.
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Video Transcript
BRAD SMITH: Also here we're tracking Vista Outdoors this morning, evaluating a takeover offer from firearms maker Colt CZ. That group values the company at $30 a share. This offer comes after Vista announced a merger deal with the Czechoslovak Group, which is a Czech industrial technology company in October here. So this, most notably here, we were continuing to take a look at Vista Outdoor shares. They're up by about 4.4% right now on this announcement.
SEANA SMITH: Yeah, we'll see what happens with this competing offer, which, again, was unsolicited. When it comes to some of the comparisons there, Vista Outdoors releasing a statement saying that their board of directors are going to carefully review the Colt CZ proposal and that they do remain committed, obviously, to acting in the best interests of Vista Outdoor shareholders here going forward. We're seeing a bit of a reaction in shares this morning at least of Vista Outdoor.
The stock up just about 4%. You mentioned that all cash and stock merger valuing the company at $30 a share. Of course, the question is, how that stacks up to the competing offer, an agreement that they have already made, and exactly how this all pans out for the company here going forward?
