July 11 (Reuters) - Institutional Shareholder Services

has recommended Vista Outdoor ( VSTO ) shareholders to vote

against the proposed merger of the company's ammunitions unit

with Prague-based defense firm Czechoslovak Group (CSG), in a

letter seen by Reuters.

ISS wrote that MNC Capital's final buyout offer of $42 per

share "appears to be a better alternative" citing market

skepticism around Vista's forecast of doubling core profit in

fiscal 2025 from its standalone Revelyst business after the

proposed CSG deal.

On Thursday, Vista said ISS had refused to engage with the

company on the CSG transaction, and added its report did not

provide a "full and fair recommendation" to the stockholders.

Earlier this week, Vista had rejected MNC Capital's buyout

offer of $3.2 billion, and agreed to CSG's increased bid for its

ammunition unit, called the Kinetic Group.

The company had said it expects the deal to close this month

and has urged shareholders to vote for the merger with CSG at

the special meeting scheduled to be held virtually on July 23.

Vista has maintained that MNC's offer undervalues its

performance gear business, named Revelyst, and added in a letter

to stockholders on Wednesday it may consider pursuing strategic

alternatives for the unit at the "appropriate" time and

valuation.

The Federal Ammunition and Remington Ammunition owner also

said a vote against the CSG deal at the special meeting would

not mean the company's board would negotiate with MNC Capital.

MNC Capital did not immediately respond to a Reuters request

for comment.

ISS had previously recommended Vista shareholders to abstain

from voting on a proposed merger during the special meeting.

On closing of the CSG deal, which has received regulatory

approval from an interagency committee of the U.S. government,

Vista's stockholders will receive one share of Revelyst common

stock and $21 in cash apiece.