JJB Takeover Halt

There have been more problems for struggling sportswear chain JJB Sports with the end of takeover talks and a cut in profits. Shares fell 20 per cent on the takeover failure and news that annual profits slumped by almost a quarter. The Wigan-based company said its board had concluded that the takeover approach had been "unlikely to lead to an offer that would reflect the fair value of the company".

The group revealed the approach in a statement last Friday. Shares soared 24 per cent after the announcement, which followed a failed bid by JJB's chairman to take the company private last year. Cinven is understood to have approached Dave Whelan, a former footballer and chairman of JJB, in recent weeks.

The group has struggled in the face of tough competition since 2003, when annual profits dropped for the first time since its flotation and issued a profits warning in July. JJB, with 448 stores across the country, is the UK's biggest sports chain and was valued at around £600m.