Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Sports Direct ups stake in Umbro

Sports Direct has upped its stake in Umbro to 29.9% sparking speculation it may try to thwart Nike's takeover of the sports brand.

Nike had an offer of £295 million for the brand recommended by the board last week. Its offer was made through a scheme of arrangement and needs to garner the support of shareholders representing 75% of the equity to succeed.

However Sports Direct's new shareholding means it could effectively block the takeover or force Nike into paying more for the business. 29.9% is the most it can hold without launching a counter offer for Umbro, but Sports Direct founder Mike Ashley could still enter a takeover battle.

Nike's proposed takeover of Umbro has already won crucial support of the Football Association - Umbro has the contract to produce football shirts for the England team. However Sports Direct rival JJB Sports also built a 10.12% stake in the company last month to give it a say in any negotiations and it is unclear whether JJB will support Nike's offer.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.