Sports Direct may raise bid for Blacks Leisure

Sports Direct International – led by Newcastle United owner Ashley – is said to have written to Blacks Leisure via advisers about the potential for a "materially increased offer" if they can get assurances over suppliers.

Yesterday's reports came as Sports Direct faces a 1 April deadline to lodge a formal offer or walk away, as set by the City takeover panel.

But advisers to Sports Direct are understood to want confirmation from Blacks that suppliers would continue to sell stock to the firm if the takeover went ahead.

It is thought there are fears among suppliers over Ashley's reputation as a heavy discounter.

Blacks, whose history stretches back to the 1860s in Greenock, rebuffed a 62p-per-share potential offer earlier this month and vowed to press on with expansion plans.

The outdoor clothing retailer described the indicative offer from Sports Direct – which is already its biggest shareholder – as wholly inadequate, adding that it represented a premium of 3.3 per cent on its share price the day before it received the approach.

Sports Direct snapped up 28.5 per cent of Blacks last month and vowed to stop its rival raising some 20m from shareholders for an enlargement plan that would have seen it open up to 35 new stores.

Blacks countered by saying it would side-step the opposition by restructuring the shareholder vote in a way that meant it only required a simple majority of shares to be in favour.

The chain has suffered a difficult past couple of years, leading to a restructuring and the closure of 87 loss-making stores in the fourth quarter of 2009 after securing a rescue deal with its landlords.

It has since reported improved trading and wants to refurbish its core estate and reopen shops in areas where it closed stores.