JJB Sports in takeover controversy

The buyers of a major stake in JJB Sports have given written reassurances that they are not linked with Mike Ashley, who runs rival Sports Direct. Suspicions that Ashley may be behind the purchase were aroused this weekend when JJB announced that its founder, Dave Whelan, and his family had sold their entire 29 per cent stake, worth £190m, to a joint venture vehicle set up by sports executive Chris Ronnie and Icelandic financial group Exista.

Both Ronnie and Exista have links to Ashley, who recently took over Newcastle United. Exista has had cross-shareholdings with fellow Icelandic bank Kaupthing, which advised Ashley on the Newcastle deal, while Ronnie, a former chief operating officer at Umbro, has worked for the reclusive tycoon. Ronnie will become deputy to Tom Knight, JJB's chief executive. Knight said: 'We have had assurances from them in writing.'