Sports Direct shares drop with M&A chief’s sudden exit
SPORTS Direct’s share price fell more than four per cent in morning trading yesterday after it emerged that its mergers and acquisitions boss Jeff Blue was leaving the retailer.
Blue, a former Merril Lynch banker, was hired two years ago to spearhead takeover deals for Mike Ashley’s high street giant.
He was also standing in as finance director for Bob Mellors, who has not been replaced since he left for personal reasons last year.
Blue, who had been involved in Sports Direct’s investments in Debenhams, is not renewing his contract, the Times reported.
A spokesman told the paper: “Jeff is employed by Sports Direct until the end of March.”
Ashley is also facing increased pressure regarding the administration of USC, which resulted in several redundancies at the start of the year.
At least one analyst believes it is Ashley’s Rangers association that is harming Sports Direct’s share price.
Mike van Dulken, the head of research at Accendo Markets, said “a brace of bad news” about the club had hit the retailer’s stock.
“First, auditor Deloitte has raised questions over whether Rangers’ operating company can continue as a going concern, while, secondly, a venue has finally be found for its March 4 extraordinary general meeting.
“This is being called by South African former director Dave King, who hopes to oust the board.” The venue is still uncertain after a London hotel pulled out of hosting Sports Direct – fearing rowdy fans.
Shares closed down 0.07 per cent.