Blacks Leisure, an outdoor goods company, announced today that it has rejected the recent takeover bid worth £39 million from Sports Direct. The board of Blacks Leisure called bid of Sports Direct wholly inadequate. Blacks Leisure said that it would stick with its plan of raising money for the final phase of turnaround plan.

Blacks Leisure, which owns the Millets and Blacks Outdoor chains, has earlier complained to the Financial Services Authority that that Sports Direct made a takeover approach despite losing control of its stake in Blacks Leisure. Sports Direct is a major shareholder in Blacks Leisure with 28.5% stake in Blacks. The board of Blacks Leisure said that Sports Direct has lost control as a result of the Icelandic banking collapse.

Sports Direct last month blocked Blacks' plans for raising £22 million before announcing that it was considering a cash offer. The board of the Blacks Leisure thinks that Sports Direct is now attempting to transfer that potential shareholder value from its shareholders to Sports Direct. The board said that the company will continue to consider its plan of fundraising for the company as it would be in the best interests of shareholder's value.