Nike is in talks with Mike Ashley, the founder of U.K. sporting goods retailer Sports Direct, regarding its pending acquisition of Umbro, the Financial Times reported. A spokesperson for Ashley said that he is not opposed “in principle” to Nike's buyout of Umbro, but that should not be interpreted as a definite vote in favor of Nike's offer.
Sports Direct owns 29.9% of Umbro and along with rival retailer JJB Sports PLC which has 10.12%, could block the deal. The retailers are concerned that supplier terms will deteriorate if Nike gains ownership of Umbro. Nike bid 285 million pounds ($570 million) for Umbro in October, and needs support from holders of 75% of the stock to secure the deal.
