(Reuters) – Vista Outdoor (NYSE:) said on Monday that possible pressure from investment firm MNC Capital could cause one of the bidders to acquire the company’s sporting goods business to abandon its $2 billion offer.
MNC’s allegations that the bidder breached certain contractual agreements may have limited the party’s ability to make an offer for Kinetic Group’s sporting goods division, Vista said in a statement.
Vista did not disclose the name of the bidder. MNC Capital, whose bid to acquire Vista has been rejected three times in the past, did not respond to a request for comment.
Vista Outdoor on Monday backed a proposal to sell its sporting goods division Kinetic Group to the Prague-based Czechoslovakian group for $1.96 billion.
Vista, which announced plans to split its outdoor and sports products divisions into two separate companies in 2022, said it remains confident the CSG deal will receive approval from the Committee on Foreign Investment in the United States.
“CSG will be an excellent owner of The Kinetic Group with a strong commitment to U.S. manufacturing and its U.S. workforce, as well as deep expertise in supply chain improvement, ammunition production and support to NATO and allied nations,” Vista Chairman Michael Callahan said in a statement.
MNC Capital has made repeated attempts to buy the entire company since March, but was rebuffed by Vista on the grounds that it undervalued the company and its high-end hardware business, Revelyst.
Vista also noted on Monday that the alternative party disputes the validity of the MNC’s allegations.
The company, valued at $2.10 billion, also rejected an offer of $30 a share from Czech gunmaker Colt CZ Group in November.