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Knight Vinke downplays reported interest in Adidas stake

Published 17/09/2014, 10:53
© Reuters Adidias logos are seen on the company's building in Landersheim near Strasbourg
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FRANKFURT/LONDON (Reuters) - Eric Knight, founder of activist fund Knight Vinke, poured cold water on a report he was part of a group of hedge funds seeking to buy a stake in sportwear maker Adidas (DE:ADSGn) to pressure management into sweeping changes.

"We don't have a shareholding and it's not something we're following," Knight told Reuters.

Germany's manager magazine reported on Wednesday that hedge funds including Knight Vinke, Third Point and TCI were considering buying stake in the world's second-largest sportswear firm, driving a 4 percent jump in its shares.

The funds will seek radical changes in management and aim to pressure Chief Executive Herbert Hainer, the report said.

Investors have been disappointed by Adidas management, blaming the leadership for losing ground to larger U.S. rival Nike (N:NKE). Adidas shares have lost 25 percent over the past year.

Adidas was not immediately available for comment on the summary of a report to appear in manager magazin, which cited unnamed sources.

TCI had yet to respond to an email requesting comment. A call to Third Point in New York also remained unanswered outside business hours.

© Reuters. Adidias logos are seen on the company's building in Landersheim near Strasbourg

Adidas shares were up 4.3 percent to 61.27 euros by 0942 GMT (10.42 a.m. BST), leading a 0.43 percent rise in the DAX (GDAXI).

(Reporting by Simon Jessop in London and Thomas Atkins in Frankfurt; Editing by Kirsti Knolle and David Clarke)

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