KEY POINTS:
Sports Direct, the sports retailing giant run by the maverick chief executive Mike Ashley, has thrown Nike's takeover of Umbro into doubt after building a 29.9 per cent blocking stake in the maker of England's national football team kit.
The share raid nearly doubled the 15 per cent stake Sports Direct had built up in the business to bring its holding to just shy of the 30 per cent threshold at which a full takeover would be triggered.
The move is understood to have been carried out at a price above the 195p ($5.26) per share offered by Nike.
Speculation has simmered about Ashley's intentions since Nike last week unveiled a £285 million ($770 million) recommended offer for Umbro.
The company declined to comment, leaving analysts to guess what Ashley's next move would be. One possibility could be that, by building a blocking stake, he could force Nike into paying more.
He may also be looking to increase his leverage to ensure that supply terms don't worsen once the American giant takes Umbro into the fold.
Yet most City analysts were betting Ashley would launch a full bid for Umbro.
If he does so, a key element that would have to be worked out would be Umbro's contract with the Football Association to be the official supplier of England kit to 2014.
- Independent
