The stake brings Mike Ashley’s business just 0.1 per cent below the threshold to make an all-out bid for Umbro. It is also thought to have been bought above the 195p per share price offered in Nike’s bid.
Following the announcement and the prospect of a bidding war, shares in Umbro rose 3.5p to 193.3p yesterday.
Numis retail analyst Ramona Tipnis said: "In our opinion, Sports Direct will be looking to ensure its interests are protected as ownership changes hands. It will be looking for continuity of supply and margins. Any attempt by Sports Direct to derail the current process would have a negative impact on Umbro's share price."
Last week, Sports Direct named Malcolm Dalgleish and Dave Singleton as new non-executive directors after the departure of Chris Bulmer.
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