Shares in Adidas rose more than 6% in early trading on reports that a group of investors is interested in acquiring the sportswear giant’s Reebok brand for $2.2 billion (£1.4bn).
Hong Kong-based investment firm Jynwel Capital and Abu Dhabi government-affiliated funds are set to launch their bid imminently, The Wall Street Journal reported, citing sources familiar with the matter.
Adidas bought rival Reebok for $3.8bn (£2.1bn) hoping the tie-up would give it ammunition against rival Nike. However, both brands have reported weak trading recently and, in contrast Nike, have seen a slowdown in sales in the US and western Europe.
Adidas also lost the battle for the World Cup to Nike despite being the official sponsor.
The sneakers giant reported a sharp increase in profits for the quarter to the end of August as Adidas conceded its targets for 2015 were no longer achievable citing market turbulence in Russia.
The German company now expects mid-to- high-single-digit sales growth for 2014 on a currency-neutral basis, down from high-single-digit.
Earlier this month, Adidas announced plans to return as much as €1.5 billion to shareholders over the next three years.
Adidas, which sponsors Barcelona’s Lionel Messi, bought Reebok for $3.8 billion (£2.4 billion) in 2005 in a move that initially doubled its US sales.
Other bidders linked to Reebok in recent weeks include hedge funds Knight Vinke, Third Point and TCI.
