UPDATE 2-Vista Outdoor urges MNC Capital to increase $3 bln buyout offer

(Adds shares in paragraph 2, details from paragraph 5 onwards)

April 22 (Reuters) - Vista Outdoor said on Monday it was engaging in discussions with investment firm MNC Capital for a better deal than its all-cash offer to acquire the sporting and outdoor products maker for $3 billion.

The company's shares were up about 5% in premarket trade.

MNC Capital had in March raised its all-cash bid to acquire Vista to $37.50 per share, or $3 billion, after the company turned down its earlier offer of $2.90 billion.

Vista is already in talks to sell its sporting goods unit, which includes its guns and ammunition business, to privately-held Czech defence and civil manufacturing company Czechoslovak Group (CSG) in a $1.91 billion deal.

The company adjourned its special meeting of shareholders to June 14 from May 16 given the talks with MNC, and added that it continues to recommend its stockholders to vote in favor of the deal with CSG.

Vista said that MNC's proposal undervalues its performance gear business, named Revelyst, and added that its board does not consider MNC's revised offer to be superior to the transaction with CSG.

The Anoka, Minnesota-headquartered company said it remains confident that its merger with CSG would receive clearance from the Committee on Foreign Investment in the United States (CFIUS).

In March, Vista said that MNC's $2.9 billion takeover offer did not take into account the significant shareholder value that was expected to be created through the separation of its outdoor products and sporting goods segments.

The company also turned down a $30-a-share cash-and-stock merger offer from Czech gunmaker Colt CZ Group last November on similar grounds. (Reporting by Juveria Tabassum; Editing by Savio D'Souza and Varun H K)