Nike edges closer to Umbro takeover
February 2, 2008 - 0:0
LONDON, England (AP) -- Nike's $566 million takeover bid for Umbro moved a step closer to completion Thursday when Umbro shareholder JJB Sports said it would back the offer.
The commitment from JJB, which holds a 10.1 per cent stake in Umbro, removes another hurdle just weeks after British regulators cleared the deal.Roger Lane-Smith, JJB's non-executive chairman, says accepting Nike's cash offer for Umbro is in the best interests of shareholders.
A potential obstacle was posed by Sports Direct International's buildup of a 30 per cent stake in Umbro.
However, Sports Direct founder Mike Ashley sold 20 percent of that stake to Nike in December.
He also promised to vote in favor of the deal and to sell the U.S. company the remaining 10 per cent of the stake.