Vista Outdoor Gets Higher Offer for Ammunition Unit Amid Bidding War [Video]

Shares of Vista Outdoor (VSTO) rose Monday after the manufacturer and marketer of sporting and outdoor items said it supported an increased offer from Prague-based defense company Czechoslovak Group (CSG) for its Kinetic Group ammunition division.

The move was aimed at holding off a takeover attempt of the entire company by private equity firm MNC Capital Partners. 

The company said CSG increased its offer by $50 million to $2.15 billion for the unit, which sells ammunition products with brands such as Remington and Federal. Vista is also offering shareholders an additional $125 million in cash.

Vista said the latest CSG offer is superior to the $42-per-share bid for Vista by MNC Capital, which said it is committed to its proposal. Vista would continue to operate its Revelyst division, which makes Giro and Bell helmets and other goods, as a separate company.

Vista Chair Michael Callahan wrote that the company is “confident the transaction with CSG maximizes …