Belgravia rumoured to make bid soon

Rumours are that the Jersey-based Belgravia Group is ready to bid on English Newcastle in a takeover of GBP 235 million, which would include a profitable land deal and possibly 7,000 jobs.

"We are still in negotiations, but no formal offer has been made and we do not comment on press speculation," said a Belgravia spokesman.

Newcastle chairman Freddy Shepherd has been adamant that no formal offer has been made and dared prospective investors to make their move.

Belgravia and Polygon, a U.S. hedge fund, expressed interest in the club, while former chairman, Sir John Hall, has verified he held talks concerning his holdings.

Hall has approximately 29 percent of the shares while his son Douglas has about 12 percent.

Shepherd owns about 28 percent and has shown few signs of giving up his interest in the club after nearly nine years as chairman.

The chairman became the target of angry fans after Newcastle's 1-0 Premier League loss to Sheffield United. Shepherd promised to go on with his work to increase the club's worth and claimed that if a Geordie Roman Abramovich came forward, he would welcome him with open arms.

There has been talk that Shepherd may initiate his own takeover after increasing his holdings to 30 percent, where he can then make an offer to shareholders.

Shepherd and the Halls could make a large profit from selling out, but the projected GBP 235 million, besides a portion being divided among shareholders as dividends, would also be used in the new owners investment budget to increase the club's value.

With a GBP 1 million investment in shares by Northcote Ltd.- Kapena Fund, an Isle-of Man based equity fund, and the recent rumour of the bid, the club's share price went up making Newcastle's worth more than GBP 93 million.

Northcote, which bought 1,475,000 shares at 72.8 p, costing a total of GBP 1,073,800, was resolute its purchase was not part of a takeover bid.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.