Mike Ashley's 'Cobbler' gaffe in Blacks takeover bid

Mike Ashley's relationship with the City hit a new low today when he referred to a rival company for which he is making an apparently serious takeover bid as "Cobbler" in an official statement to the stockmarket.

The tracksuit tycoon, who owns Sports Direct and Newcastle United, has been involved in a long running spat with Blacks Leisure, the camping gear group that also owns Millets.

As a 28% shareholder he has moved to block a rescue rights issue, having previously attempted to oust the entire board.

Today it emerged that he submitted a takeover bid for the company at 62p a share - £26.4 million.

That's the same as today's share price, suggesting he is far from desperate to secure a deal. One investor said of the offer: "It brings new meaning to the word derisory."

The statement to the stock exchange reveals the code word Sports Direct and its advisers are using to describe Blacks is "Cobbler" - a slang word for nonsense.

At the least, the foul-up is a source of embarrassment to Ashley's advisors. He could also be asked to explain himself to the City Takeover Panel, which takes a dim view of frivolity.

Bob Mellors, the Sports Direct finance director who is theoretically leading the bid, is said to be on holiday.

A spokesman declined to comment on Mellors' whereabouts or the Cobbler error.

The banking advisers named, all of whom presumably approved the statement, are David Arch, Michael Shaw and James Nevin of Oriel Securities. The public relations experts are Financial Dynamics. A correcting statement was later issued.

The offer, indicative rather than formal in any case, is subject to several unnamed "pre-conditions". The Blacks board has rejected the deal.