RETAILER JJB Sports has been fined for failing to disclose it bought two smaller rivals for £16m more than it told investors.
JJB bought Original Shoe Company in December, 2007, for £5m in cash, but did not reveal it paid an additional £10m for stock in the stores.
In May, 2008, JJB said it acquired footwear chain Qube for £1 in cash, but did not say that it also paid the firm’s £6.5m overdraft.
The Financial Services Authority fined JJB £455,000 after ruling that its lack of transparency created a false market in its shares for nine months.
The fine was cut by 30% because JJB settled at an early stage in the investigation.
