Nike edges closer to Umbro takeover

Nike's $566 million takeover bid for Umbro moved a step closer to completion today 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 per cent of that stake to Nike in December.

http://edition.cnn.com/2008/BUSINESS/01/31/umbro.nike.ap/index.html