Adidas must unlock Reebok's value: analysts
Break-up estimates show German firm's stock recovering by at least 15% from asset sales
London
ADIDAS AG selling its Reebok unit, even at a loss, is the best first step the sporting-goods maker can take towards recouping the US$10 billion that shareholders lost this year.
A group led by a Hong Kong-based private-equity investor is preparing an offer for Reebok, people familiar with the matter said. They are potentially going to bid about US$2.2 billion, according to The Wall Street Journal. Adidas bought Reebok in 2006 for US$3.8 billion in cash. An innovator in fitness shoes 30 years ago, Reebok has since lost popularity and Adidas may be better off selling it than trying to revive the brand.
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