FRANKFURT (Reuters) - German sporting goods maker Adidas-Salomon is buying U.S. rival Reebok in a 3.1 billion euro ($3.8 billion) deal to expand its reach in Nike's home market.
Shares in Reebok surged 32 percent to $58.17 in Germany, while Adidas was up 6 percent at 156.40 euros at 1005 GMT, after it painted a bright outlook for the merged group.
Adidas shares had initially dropped 4 percent on the news, as it said it would help fund the takeover with equity and as some analysts questioned the deal's benefits.
Adidas, the number two in the sporting goods industry behind Nike, said on Wednesday it was buying the outstanding shares of No. 3 player Reebok for $59 per share in cash, a 34 percent premium to Reebok's closing share price on Tuesday. ~more
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