Sports Direct, headed by U.K. billionaire Mike Ashley (picture at right), filed papers
notifying the London stock exchange that the retail chain has acquired
a 29.9% stake in Umbro, almost doubling its original holdings in the
company. Previously, Sports Direct owned roughly a 15% stake. Sports
Direct paid an average of £1.95 ($4.01), or 3% higher than Nikes
offer.
According to London papers, under the current structure of the acquisition agreement between Nike and Umbro, 75% of Umbros shareholders must vote in favor of the deal. So, with this latest purchase of Umbro stock, Sports Direct has put itself into a position where it can block the deal. Sports Direct also owns minority shares of Amer Sports and adidas.