Umbro approached but Nike stays silent

UK: Umbro confirms bid approach but Nike stays silent

By just-style.com | 19 October 2007

Leading UK soccer kit brand Umbro has confirmed it is the subject of a takeover approach, with rumours suggesting Nike is a likely buyer and that retailer Sports Direct is also in the picture.

Umbro, dealt a blow when England - for which it makes the team kit - lost a crucial game on Wednesday (17 October), has yet to specify who the interested party is but it is widely thought to be Oregon-based Nike.

The company said: "In response to recent speculation, the board of Umbro confirms that it has received an approach which may or may not lead to an offer being made for the entire issued share capital of Umbro. A further announcement will be made in due course."

Nike head of corporate communications Charlie Brooks told just-style that the company had no comment on what it termed as "speculation and rumour".

If Nike were to acquire Umbro, it would gain some much-needed breathing space from rival German sportswear firm Adidas Group, which acquired Reebok last year for EUR3.1bn (US$3.8bn).

Another company linked with Umbro has been Sports Direct, the UK discount chain founded by entrepreneur Mike Ashley. Last month it upped its share in Umbro to 4.97% of the voting rights, increasing this to 15.04% on Wednesday (16 October). The company was not available to comment.

Umbro would be shaken if England fail to qualify for the forthcoming Euro 2008 Championship - a likely scenario having lost 2-1 in a decider against Russia on Wednesday. A failure to qualify would almost certainly hit next year's sales of replica kit.

Its shares, however, have risen 14.38% to GBP175 today following the announcement of a potential offer.

By Joe Ayling.

Sectors: Apparel, Manufacturing

Companies: Umbro, Nike, Sports Direct, Adidas Group, Adidas, Reebok