The board of directors of Vista Outdoor is giving Texas-based investment group MNC Capital another chance to raise its bid to acquire the company's ammunition and outdoor products brands.

MNC Capital was in early discussions to acquire Vista Outdoor's ammunition companies and made bids for the entire company after Vista selected Prague-based Czechoslovak Group's bid for the ammunition brands in October. The CSG Group's $1.9 billion offer was for Anoka-based Federal and Remington, Speer, CCI and Hevi-Shot. Under that deal, Vista's outdoor products company would become a standalone public company, Revelyst Inc.

MNC Capital made its latest bid of $37.50 a share on March 24, up from from an earlier bid of $35 a share. That bid was for the ammunition companies and Revelyst. MNC Capital is a group of 10 U.S.-based investors led by former Vista board member Mark Gottfredson.

"The Vista Outdoor Board does not consider MNC's revised proposal to be superior to the transaction with CSG and continues to believe MNC's proposed offer price undervalues the Revelyst business," Michael Callahan, Chairman of the Vista Outdoor Board of Directors, said in a news release. "That said, the Board has determined MNC's revised proposal meets the standard under the merger agreement with CSG permitting engagement with MNC."

Further engagement means Vista will share non-public information with MNC Capital so MNC can continue its due diligence.

MNC Capital and CSG Group declined comment on the latest development.

The deal with CSG Group still stands and both Vista and CSG Group remain convinced they can earn critical government regulatory approval from the Committee on Foreign Investment in the United States. CSG has noted that it received CFIUS clearance for its 2022 acquisition of the ammunition company Fiocchi of America.

MNC Capital and some conservative members of Congress have called the deal to sell U.S.-based ammunition companies to CSG a national security issue, and have urged CFIUS to carefully review the CSG deal.

Vista says it is still bound by the CSG offer it accepted in October, but while the company ruled the latest offer from MNC Capital was not superior to that deal, it said the deal is good enough to continue engaging with MNC Capital to get a higher offer.

Vista Outdoor's board still recommends shareholders approve CSG Group's offer but a May 16 shareholder vote on that deal has been rescheduled for June 14.

Vista Outdoor's shares rose 6.5% on Monday after asking MNC Capital to raise its bid. Shares closed at $34.46 a share on Monday, a 52-week high.