JD announced to the stock market yesterday that it had taken a 10 per cent stake in JJB, at a cost of just over £8m, as a `strategic investment'.
The move sparked an initial surge in JJB's shares of eight per cent to 35.25p, although they later fell back to 33.25p, up 0.5p or 1.54 per cent, giving the company a market value of £82.2m.
JD sources said the company was keen to gain a seat on JJB's board and had not discounted further share swoops.
The firms are already in talks over the sale of JJB's Qube and Original Shoe Company fashion businesses to JD.
Peter Cowgill, chairman of JD and the driving force behind its revival in recent years, said the best way to `get a seat at JJB's table' was by buying a substantial stake.
JD's shares were unchanged at 233p, giving the firm a market value of £113.5m.
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