Sports Direct Fails in Attempt to Expand Its Business Ties with Findel

  • Findel’s board rejects Sports Direct’s £139m takeover bid
  • Sports Direct increases stake in Findel from 29.9% to 36.8%
  • Sports Direct sees the offer as a way to expand commercial arrangements and support Findel’s growth

Findel’s board of directors has unanimously rejected Sports Direct’s £139 million takeover bid, stating that the offer significantly undervalues the company. This decision comes after Sports Direct increased its stake in Findel from 29.9% to 36.8% by agreeing to buy shares worth £9.7 million. Under takeover rules, any investor acquiring more than 30% must make a bid for the entire company. However, Findel’s directors urged shareholders not to take action. Sports Direct believes that the offer is an effective way of expanding its commercial arrangements with Findel and providing increased support to maximize the value of its existing business. The acquisition would have allowed Sports Direct to gain more exposure to Findel’s future growth. This move follows Ashley’s recent acquisitions of Evans Cycles, House of Fraser, Sofa.com, and an unsuccessful attempt to buy HMV.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the rejection of Sports Direct’s bid by Findel’s board of directors and the reasons behind it. It also mentions the background of Ashley’s previous acquisitions. However, it could provide more context on Findel’s business operations and the potential benefits of the acquisition for Sports Direct.
Noise Level: 3
Noise Justification: The article provides relevant information about the rejection of Sports Direct’s bid for Findel and mentions Ashley’s previous acquisitions, but lacks in-depth analysis or exploration of long-term trends or consequences. It could provide more context on the reasons behind the undervaluation and potential impact on both companies.
Financial Relevance: Yes
Financial Markets Impacted: Sports Direct, Findel
Financial Rating Justification: The article discusses a takeover bid by Sports Direct for Findel, which impacts the financial markets and companies involved.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk