Following news that Specialized will be dropping title sponsorship of their race team on cost grounds, it has now been confirmed that Far Eastern bike (including Specialized’s) maker Merida have increased their number of shares in the company. Company founder Mike Sinyard has also increased his share option to retain a controlling interest in the company.

The positive spin they’ve put on is that it gives them more R+D and marketing money “in today’s challenging economy.” Merida are cited as a better investor as they have far more experience of the trade than any outside finance house would have, which is true enough, and investment in companies is a regular occurence and definitely not neccesarily cause for alarm.

However this announcement comes only days after Schwinn / GT had to sign a legal agreement enabling their manufacturers in the far east could sell bikes – that Schwinn / GT apparently couldn’t pay for – direct to dealers to offset costs.

It’s probably fair to say if you’re looking to make millions, we suggest you don’t set up a global bike company for a while.