Sports Direct has said it will not bid for Blacks Leisure over uncertainties surrounding suppliers reactions if its bid was successful.
The sports retailer had made an indicative offer of 62p per share which Blacks had described as “wholly inadequate” and had been given till tomorrow (April 1) by the Takeover Panel to “put up or shut up” concerning its intentions.
Last week Sports Direct sent a letter to Black’s board to say it was seriously considering raising its offer.
However it said it was concerned that some key suppliers may not have continued their supply had Sports Direct’s bid been successful. Sports Direct said in a statement: “In view of the importance of this matter and in order for Sports Direct to determine the level of any increased offer, Sports Direct requested confirmation of, and the details underlying, any supplier indications to Blacks.
It added: “The Blacks board has neither provided this information nor denied its existence. Without clarification in relation to this issue, Sports Direct has been unable to finalise its views on the value of any potential offer. Accordingly, Sports Direct has determined that it would not be in its shareholders’ interests to make an offer for Blacks at this time.”
It added that it may revisit a potential bid in the next six months with the agreement or recommendation of Black’s board, if a third party makes an offer or material circumstances change.