UPDATE 1-Sports Direct, JJB Sports cleared in fraud probe

Published 10/19/2010, 03:53 AM
Updated 10/19/2010, 03:56 AM

* Investigations continue into unidentified individuals

* Sports Direct shares down 0.9 pct, JJB Sports up 2.4 pct

(Adds analyst, detail, background, shares)

LONDON, Oct 19 (Reuters) - British retailers Sports Direct and JJB Sports have been cleared by a fraud probe, although investigations into unidentified individuals continue, the two companies said on Tuesday.

Britain's Serious Fraud Office (SFO) had been investigating both sporting goods retailers over possible price fixing and fraud.

"No charges are to be brought against the companies or any companies within their corporate groups. The Serious Fraud Office's investigation into individuals continues," Sports Direct said in a statement that was later echoed by JJB Sports.

Sports Direct, Britain's biggest sporting goods retailer and which is controlled by Newcastle United soccer club owner Mike Ashley, declined to identify the individuals being investigated.

"This announcement giving Sports Direct a clean bill of health regarding the SFO investigation is what investors were hoping for," Singer analyst Matthew McEachran said.

"The shares have run up in anticipation of this result though. Furthermore, with the investigation into individuals still ongoing there remains some risk and uncertainty to the investment case," he said.

At 0735 GMT, Sports Direct shares were down 0.9 percent at 147.8 pence. JJB Sports was up 2.4 percent at 10.5 pence. (Reporting by Mark Potter; Editing by Louise Heavens)

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