A consortium of investors from Hong Kong and Abu Dhabi "is launching a bid to buy Reebok" from adidas in a move that, "if successful, would unwind an eight-year-old marriage of sneaker makers that has shown disappointing results," according to Maureen Farrell of the WALL STREET JOURNAL. Sources said that Jynwel Capital, the "investment arm of the billionaire Low family of Asia, and funds affiliated with the government of Abu Dhabi planned to send a letter to Adidas directors imminently, offering to buy its Reebok business" for about US$2.2B. They are "expected to argue that Reebok would have a brighter future if it were managed independently, echoing a sentiment that has underpinned a recent wave of corporate breakups." It is not clear "how receptive Adidas might be to the bid and there is no assurance it would be successful." adidas bought Reebok in '06 for $3.8B. The company recently "has worked to reposition Reebok as a fitness brand, and it has struck partnership deals with CrossFit and others." Jynwel Capital CEO Jho Low is "the architect of the bid for Reebok." Sources said that Low's investment group "wants to continue down Reebok’s current strategic path and give the business more financing for marketing and store rollouts." They added that the investors "would seek to keep Reebok’s top executives," who work out of the company's HQs in Canton, Mass. (WALL STREET JOURNAL, 10/20).
