Sports Direct International PLC (LON:SPD) looks to be the frontrunner to buy bike stores chain, Evans Cycles after Sky News reported that fellow FTSE 250-listed retailer Halfords PLC (LON:HFD) has dropped its plans to buy the business.
Citing sources, Sky News’ website said Halfords - which offered to buy Evans last month - had ended talks with the private equity-owned firm's advisers.
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The report added that Halfords had decided to focus on Cycle Republic and Tredz, its existing premium brands, rather than pursuing Evans.
Sky News said that Billionaire Mike Ashley’s Sports Direct is now considered the new frontrunner in the race to acquire Evans having reportedly earlier this month tabled indicative offers together with rival JD Sports Fashion PLC (LON:JD.) and other financial investors.
It added that any takeover of Evans is likely to value it at between £10mln and £20mln.
Evans - which is owned by the private equity firm ECI Partners - trades from just over 60 stores across the UK and can trace its history to 1921.