Maybe it is not game over for old school video gaming retailer GAME Digital PLC (LON:GMD).
Power drinker Ashley is not regarded as one of life's natural computer gaming geeks, but he does like taking a stake in struggling retailers, having a bit of form in this regard, such as his investment in Debenhams. With Elliot holding circa 43%, anything more than a strategic stake on Sports Direct's part is clearly contingent on Elliot's position.
Game's shares closed almost 23% higher on Wednesday amid speculation about higher-than-average trading activity. Some analysts see the position building as leverage for deal making.
Shares in the company plunged from 33p to 21p at the end of June on a profit warning, but rose 9.3% this morning to 26.5p as Mike Ashley took a chunky stake.Читайте также: Man Stuck Inside of an ATM
Shares in Game Digital are now up 5.15 percent and similarly, shares in Sports Direct ticked up 1.57 percent as of 15.22PM (GMT).
Ashley has been embroiled in a £15 million court case this week in which he is accused of promising to pay the sizeable sum while drunk in a pub, before vomiting in the fireplace.
"It is regarded as highly unconventional for a major listed company to invest in other listed companies", Blue said in his statement.
The company has a market value of just £33.74m following a slump in the shares amid continued trading difficulties, including the recent profit warning.
Mike Ashley has set his sights on Game Digital by purchasing a significant stake in the retailer to add to his high street portfolio.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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