Umbro confirms approach, shares surge

LONDON (Reuters) - British sportswear firm Umbro Plc UMB.L said on Thursday it had received an approach from an unidentified third party, sending its shares up 30 percent.

"In response to recent speculation, the board of Umbro confirms that it has received an approach which may or may not lead to an offer being made," the sponsor of the England soccer team said in a statement.

Britain's biggest sports retailer Sports Direct (SPD.L), which declined to comment on the approach, was named as the likely suitor by one trader and an analyst.

"Sports Direct has 15 percent of the share capital of Umbro so it is likely to be them. Anything above 160 pence (a share) would be a fair level (for a bid)," the analyst said.

However, Seymour Pierce analyst Andrew Wade thought Sports Direct, founded by reclusive tycoon Mike Ashley, was unlikely to be behind the approach.

"It is probably not Mike Ashley. The potential spectrum of possibilities is quite wide. It could be one of the global sports brands. There was speculation around Puma (PUMG.DE) earlier in the year, or it could be private equity, possibly even (Peter) McGuigan, the old chief executive," he told Reuters.

Shares in Umbro were up 23.8 percent at 148.5 pence by 1445 GMT, valuing the group at around 216.8 million pounds ($443 million).

The England soccer team's 2-1 defeat by Russia on Wednesday, meaning they are may not reach the Euro 2008 Championship finals, sent shares in Umbro down 3.8 percent in early trade on concerns of lower demand for replica shirts.

Umbro declined to comment further on the approach.