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JD pulls plug on JJB takeover
JD Sports will not make takeover bid for JJB Sports; struggling rival's 'restructuring to continue as planned'
JD Sports has said it will not make a takeover approach for JJB Sports, after receiving limited non-public information from its rival.
On February 2 JD Sports announced it was in early stage talks with JJB Sports regarding a possible takeover, but said today (March 11) it has received little non-public information despite requests put to JJB Sports.
After receiving no further information, and reviewing JJB Sports’ Company Voluntary Arrangement as issued on March 3, JD Sports has now said it does not intend to make an offer for JJB Sports.
JD Sports executive chairman Peter Cowgill is quoted as saying: "I am very, very, surprised - amazed about this. JJB's silence has been deafening.
"I am sure we would have achieved a better solution than this. Let battle commence."
JJB Sports said it welcomed the clarification by JD Sports, ‘which will enable the company to continue to focus exclusively on delivering its standalone restructuring plan with the support of its stakeholders’.
Mike McTighe, JJB Sports chairman, said: "We welcome today's clarification from JD Sports. JJB Sport's restructuring continues as planned with the whole management team focused on and committed to delivering a stable standalone future for JJB Sports and its employees.
“The board remains confident that with the support of our stakeholders we can achieve a successful turnaround of the business."
JJB Sports expects to provide further details of its revised business plan, anticipated funding requirements and proposed financing arrangements on or around March 15.
