LONDON, March 31 (Reuters) - British retailer Sports Direct will not bid for Blacks Leisure because it believes key suppliers would not support Blacks if it took control, bringing an end to an increasingly hostile dispute.
Sports Direct, controlled by Newcastle United soccer club boss Mike Ashley, said in a statement on Wednesday it was aware certain key suppliers would not support a takeover and said that meant it was difficult to put a proper value on Blacks.
'Without clarification in relation to this issue, Sports Direct has been unable to finalise its views on the value of any potential offer,' Sports Direct said.
'Accordingly, Sports Direct has determined that it would not be in its shareholders' interests to make an offer for Blacks at this time.'
Sports Direct had been set a takeover deadline of April 1 to make a bid or walk away. The group owns about 29 percent of Blacks. Shares in Blacks were down 10.37 percent in late afternoon trading, while Sports Direct was down 1.2 percent.
Blacks, which runs the Blacks Outdoor and Millets chains, had said it preferred its own plan to raise funds and Sports Direct said on Wednesday it noted this intention.
'Sports Direct has consistently sought to at least maintain its interest in shares representing approximately 28.5 percent of Blacks' issued ordinary share capital,' it said. 'This continues to be Sports Direct's intention'
(Reporting by Kate Holton; Editing by Lorraine Turner) Keywords: SPORTSDIRECT BLACKS/ (kate.holton@reuters.com; +44 207 542 8560; Reuters Messaging:kate.holton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Sports Direct, controlled by Newcastle United soccer club boss Mike Ashley, said in a statement on Wednesday it was aware certain key suppliers would not support a takeover and said that meant it was difficult to put a proper value on Blacks.
'Without clarification in relation to this issue, Sports Direct has been unable to finalise its views on the value of any potential offer,' Sports Direct said.
'Accordingly, Sports Direct has determined that it would not be in its shareholders' interests to make an offer for Blacks at this time.'
Sports Direct had been set a takeover deadline of April 1 to make a bid or walk away. The group owns about 29 percent of Blacks. Shares in Blacks were down 10.37 percent in late afternoon trading, while Sports Direct was down 1.2 percent.
Blacks, which runs the Blacks Outdoor and Millets chains, had said it preferred its own plan to raise funds and Sports Direct said on Wednesday it noted this intention.
'Sports Direct has consistently sought to at least maintain its interest in shares representing approximately 28.5 percent of Blacks' issued ordinary share capital,' it said. 'This continues to be Sports Direct's intention'
(Reporting by Kate Holton; Editing by Lorraine Turner) Keywords: SPORTSDIRECT BLACKS/ (kate.holton@reuters.com; +44 207 542 8560; Reuters Messaging:kate.holton.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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