12:38 PM EDT, 06/17/2024 (MT Newswires) -- Vista Outdoor ( VSTO ) reaffirmed its recommendation to be acquired by Czechoslovak Group for $1.96 billion in cash on Monday after an alternate investment firm's unsolicited cash offer last week to buy its Kinetic shooting sports business for $2.01 billion in cash was withdrawn.

The maker of guns and outdoor equipment under brands such as Remington and Camelbak said pressure from MNC Capital, whose increased offer was rejected by the Vista board of directors last week, pushed the unnamed alternative party away. Shares of Vista dipped 2.3% in midday trade.

MNC Capital alleged that the alternative party violated certain contractual agreements between the two that "purportedly restricted the alternative party's ability to submit an offer for the Kinetic Group," Vista Outdoor ( VSTO ) said in a statement.

"Vista Outdoor ( VSTO ) only became aware of these agreements last week and understands they were entered into in connection with MNC's and the alternative party's consideration of a joint bid for The Kinetic Group as part of the prior sales process for that business in 2023," it wrote.

The alternative party "disputes the merits" of MNC Capital's allegations, according to Vista Outdoor ( VSTO ). MNC did not respond to MT Newswires' request for comment.

Last week, Vista Outdoor ( VSTO ) said that it remained bound to its merger agreement with Czechoslovak Group, or CSG, which carries a $47.75 million break fee if Vista Outdoor ( VSTO ) were to exit the deal. CSG offered to buy Vista's sporting business in October.

However, Vista's board determined at the time that the alternative party's offer for Kinetic could "reasonably be expected to lead to a superior proposal." It postponed a special meeting of stockholders that was scheduled to be held on June 14 for two weeks in order to engage with the alternative party ahead of the CSG vote.

"While it is unfortunate that MNC apparently caused the alternative party's indication of interest to be withdrawn, we firmly believe that completing the transaction with CSG will be a great outcome for our stockholders," said Vista Chairman Michael Callahan. "We look forward to a successful shareholder vote on July 2 and remain confident that the transaction with CSG will receive clearance" from the Committee on Foreign Investment in the United States, he said.

Price: 35.15, Change: -0.79, Percent Change: -2.20