Home shopping firm Findel has urged shareholders to take no action following a £139m offer by Mike Ashley’s Sports Direct.
The board rejected the bid and said Sport Direct’s offer of 161p for each Findel share “significantly undervalues” the company.
In a statement responding the an offer document sent to shareholders by Sports Direct yesterday Findel said: "The board will write to shareholders with its detailed views on the offer in due course.
"In the meantime, Findel shareholders are strongly urged to take no action in relation to their Findel shares."
Sports Direct said the acquisition would expand existing commercial arrangements between the companies, and will give the firm increased exposure to the future growth of the Findel business.
The offer document published yesterday said: "Following successful pilot-scale commercial tests of Sports Direct-licensed clothing brands on Express Gifts’ Studio.co.uk website, designed to strengthen Express Gifts’ product offer for the value-conscious customer, Sports Direct and Findel have further developed the commercial supply arrangements between Express Gifts and Sports Direct.
"Sports Direct continues to recognise the value and quality of the Findel business, and sees the offer as an opportunity to give increased support to Findel to maximise the value of its existing business.”