NEW YORK, June 26 (Reuters) - Institutional Shareholder

Services on Wednesday recommended that Vista Outdoor ( VSTO )

shareholders abstain from voting for a proposed merger next

week, arguing they should hold out for a better deal for the

entire company.

ISS wrote "Continue to abstain on the proposed merger;

support the adjournment proposal," in a recommendation seen by

Reuters.

The recommendation comes just after Anoka, Minnesota-based

Vista accepted a $2 billion offer for its sporting-goods

business, The Kinetic Group, from Czechoslovak Group, known as

CSG. Earlier this week the Committee on Foreign Investment in

the United States cleared the proposed transaction, finding

there were no unresolved national security concerns.

But ISS said shareholders should stop short of signing off

on the transaction at the July 2 meeting and wait for better

conditions. ISS said "an all-cash deal for the entire company

that would entail less regulatory, execution, and market-related

risks than the proposed merger," would be preferable.