Ashley increases Debenhams interest, rules out a bid

LONDON, Jan 23 (Reuters) - Sports Direct founder Mike Ashley said on Friday he did not intend to make a bid for retailer Debenhams (Other OTC: DBHSY - news) , as he increased his financial interest in the firm.

Sports Direct, controlled by Newcastle United soccer club owner Ashley, and Debenhams began working together earlier this year, with the department store trialling Sports Direct concessions in its shops.

That has coincided with the billionaire taking so-called put options in Debenhams, a financial instrument that bets the shares will not fall below a certain level.

On Friday Ashley said he had terminated one put option and bought a larger one, meaning his total investments now represent a 16.6 percent interest in Debenhams' ordinary shares.

"Sports Direct reiterates its intention to be a supportive stakeholder and create value in the interests of both Sports Direct's and Debenhams' shareholders," Ashley's firm said.

"Sports Direct does not intend to make an offer for Debenhams and would encourage the Debenhams' leadership team to concentrate fully on delivering their strategic plans."

(Reporting by Kate Holton; Editing by Elaine Hardcastle)