(RS:) Adidas seen close to buying Reebok

[lostnfound]

http://rawstory.com/news/2005/Adidas_seen_close_to_acquirin_0803.html

Germany's Adidas-Salomon AG is close to buying rival Reebok International Ltd. for about $4 billion, according to people close to the situation, in what would be a big bid by two former giants of the athletic footwear industry to challenge the long-running supremacy of Nike Inc, the (paid-restricted) Wall Street Journal reports in Wednesday editions. Excerpts follow.

Adidas is expected to pay about $59 a share for Reebok, according to one person briefed on the matter -- awarding a 34% premium over the $43.95 at which shares closed in 4 p.m. trading yesterday on the New York Stock Exchange.

Together, Adidas and Reebok would aim to widely expand their presence in the world of sneakers and other athletic apparel, which for two decades has been dominated by Nike and its ubiquitous swoosh logo. While seeing profits rise, Adidas has been restructuring and fending off competition from Nike in recent years, while Reebok, which is based in Canton, Mass., has revitalized its standing in the fashion-conscious youth market for athletic shoes and gear.


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Will they double the salary of their celebrity advertisers, slice wages of their workers, or both?

[bdot]

1. Crap!

Reebok's were the only tennis shoes I bought. Hopefully Adidas doesn't screw that up. Nike's fall apart about a week after you get them.