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ADIDAS "OUTMANEUVERED" NIKE WITH PURCHASE OF SALOMON

          In the wake of adidas' $1.3B purchase of Salomon,
     adidas and Nike "are squaring off to see which will dominate
     the sporting-goods market in the next century," according to
     Woodruff & Trinephi of BUSINESS WEEK.  adidas CEO Robert
     Louis-Dreyfus "has outmaneuvered Nike in the rush to
     diversify from shoes and apparel -- a crucial strategy that
     may push Nike to look for more acquisitions. ... Salomon's
     product line gives Adidas a new edge.  The company makes
     finely engineered products that command premium prices and
     deliver higher margins than T-shirts or sneakers.  They also
     attract attention from upscale consumers."  Woodruff &
     Trinephi add that Salomon's bindings "are the industry
     standard for both downhill and cross-country skis," and that
     one-fourth of adidas-Salomon's sales "will come from such
     high-margin products" (BUSINESS WEEK, 9/29 issue). 

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Finance, Nike, Washington Nationals

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