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Sports Direct has doubled its stake in England kitmaker Umbro, prompting speculation the retailer could sabotage Nike's planned takeover of the firm.

A regulatory filing late yesterday revealed that Sports Direct had upped its stake in Umbro from 15 per cent to 29.9 per cent.

Market analysts claim the sporting goods retailer is now in a potential position to block Nike's agreed £285 million acquisition of Umbro.

Umbro announced earlier this month that its board had decided to unanimously support Nike's 193.06p-a-share offer, describing the deal as an "excellent" one that would provide "great value" for its shareholders.

But under the terms of the deal US-based Nike must secure the support of 75 per cent of Umbro investors for its bid, placing Sport Direct in a position to upset the takeover plans.

The decision by Sports Direct - owner of London-based Lillywhites and the Sports World chain of stores - to up its stake in Umbro has even led to speculation that it could mount its own takeover bid for the company.

However some analysts have dismissed the prospect, claiming that other retail outlets that Umbro supplies the official England football kit to would not accept a Sports Direct takeover of the sportswear giant.

Shares in Sports Direct, founded by billionaire businessman and Newcastle United owner Mike Ashley, closed down 6.5p at 135.5p yesterday - amid uncertainty in the markets at why the retailer chose to up its stake in Umbro.

Umbro's planned takeover deal with Nike follows a difficult period for the sportswear maker, which has struggled to maintain sales in the wake of last year's football World Cup and which last month issued a profit warning after poor sales of England replica shirts.

Speaking after the announcement of the acquisition deal Umbro chief executive Steve Makin said the group would be "a stronger and better business as part of Nike".