Blacks Leisure snubs £26m takeover approach from Mike Ashley's Sports World

The outdoor clothing retailer described the indicative offer from its biggest shareholder as wholly inadequate, adding that it represented a premium of 3.3 per cent on its share price the day before it received the approach.

Blacks also said it would side-step Sports Direct's opposition to its fundraising plans by restructuring the shareholder vote in a way that meant it only required a simply majority of shares to be in favour.

Last month Sports Direct snapped up 28.5% of Blacks and vowed to stop its rival raising around 20 million from shareholders for an enlargement plan that would have seen it open up to 35 new stores.

By blocking the proposed fundraising Blacks said Sports Direct was effectively transferring potential value from its own shareholders to Sports Direct.

Blacks has suffered a difficult past couple of years, leading to a restructuring and the closure 87 loss-making stores in the fourth quarter of 2009 after securing a rescue deal with its landlords.

It has since reported improved trading and wants to refurbish its core estate and reopen shops in areas where it has closed stores that it felt were subject to high rents and therefore loss-making despite strong sales.

Including the new additions, the company has around 320 Blacks, Millets and Freespirit stores.

It employs around 5,500 staff in stores and at its head office and distribution centre in Northamptonshire.

Mr Ashley is majority shareholder of Sports World and also owns Newcastle United football club.