Nike is reportedly mulling a takeover bid for Under Armour. This according to the London Times, which reports Nike has been considering an offer for several months. The newspaper said Nike could offer more than $100 per share for Under Armour.
Under Armour's stock shot up more than 7 percent in post-market trading behind the rumours, but later dropped 1.6 percent in Thursday's trading when a Nike spokesman denied the rumours.
Nike is more than 10 times the size of Under Armour, in terms of market cap, but faces stiff competition from the company in the United States. Nike owns the footwear market and Under Armour dominates the athletic apparel market, though both have tried to enter into the other company's primary market.
Under Armour has been more aggressive of late in the footwear market, launching new football and basketball shoes as well as signing high profile athletes.
The leading footwear-maker already has several brands: Converse, NIKE Golf, Hurley, Umbro, and Cole Haan.