Sports Direct Thwart Nike Umbro Bid

Hopes of an acquisition of sportswear manufacturer Umbro by industry giant Nike were today dashed as a rival shareholder increased its stake in the company behind the England national shirt.

Shareholder Sports Direct International has today increased its holding in Umbro, the company behind many of the English premier division’s football shirts and their lucrative replica sales channels, to just under 30%, making it the major shareholder just one week after a proposed takeover bid was to be launched by Nike.

The move sees Sports Direct, behind brands such as Sports World and retail chains of the same name, acquire a substantial holding in the company it considers a major supplier of replica football kits, which comprise a multi-million pound industry in the UK alone.

The news now makes it very unlikely that the Nike offer of 193.06p per share will be passed, sending the world’s leading sports brand home to reconsider its next move towards acquisition.

Analysts have predicted, however, that it is unlikely that Nike will make a further bid for the company, and may seek instead to build a more substantial holding in the company before considering a launch in future.

Additionally should England continue to perform poorly on the football pitch, Umbro shareprices look likely to fall which could in turn pave the way for some rival takeover bid such as that proposed by Nike.

Meanwhile, shares in Umbro were today up considerably on the news, rising over 4.5% to beyond the realms of the initial Nike offer made previously. Markets have also anticipated that should the England national team succeed in qualification for its next international competition, profits and revenues could rise accordingly.

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