Vista Outdoor on Monday pushed MNC Capital to raise its offer to acquire the sporting and outdoor products maker, saying the investment firm’s current bid of $3 billion undervalued its performance gear business.
Shares of Vista rose 5% in early trading.
MNC Capital had in March raised its all-cash bid to acquire Vista to $37.50 per share, or $3 billion, after the company turned down its earlier offer of $2.90 billion.
Vista is already in talks to sell its sporting goods unit, which includes its ammunition business, to privately held Czech defense and civil manufacturing company Czechoslovak Group (CSG) in a $1.91 billion deal.
The company adjourned its special meeting of shareholders to June 14 from May 16 given the talks with MNC, and added it continues to recommend its stockholders to vote in favor of the deal with CSG.
Vista said MNC’s proposal undervalues its performance gear business, named Revelyst, and added its board does not consider the revised offer to be superior to the transaction with CSG.
The Anoka, Minnesota-headquartered company said it remains confident its merger with CSG would receive clearance from the Committee on Foreign Investment in the United States.
In March, Vista said MNC’s $2.90 billion takeover offer did not take into account the significant shareholder value that was expected to be created through the separation of its outdoor products and sporting goods segments.
The company also turned down a $30-a-share cash-and-stock merger offer from Czech gunmaker Colt CZ Group last November on similar grounds.