Investors target Newcastle takeover
Speculation that Newcastle United is a takeover target mounted today after its former chairman was approached about selling his stake in the club.
In a statement to the stock market, millionaire businessman John Hall confirmed an unnamed party had expressed an interest in buying the 28.5% stake held by his Wynyard business.
The announcement followed an 18% spike in the share price of Newcastle today as investors speculated that it could follow Premiership rival Manchester United in being taken over.
The rise in Newcastle shares to their highest level for more than four years meant the club is now valued at £75.6m (€109.4m), up from £65m (€94.1m) this morning.
Hall who took control of Newcastle in 1991 and is its life president, revealed the approach in response to press reports that two groups of businessmen were eyeing his stake.
According to the Daily Express, one consortium is being led by a “cash-rich British entrepreneur” who wants Tyneside legend Kevin Keegan to return to the club in a senior role. Hall was instrumental in bringing Mr Keegan back to Newcastle as manager in 1992.
The report said it believed a Malaysian-based group was also keen on developing existing plans for a casino and leisure complex at St James’ Park.
It is likely that any takeover deal will need the blessing of current chairman Freddy Shepherd who owns 27% of Newcastle and could buy more shares to push him towards the 29.9% limit before he would need to make a mandatory offer for the whole club.
The takeover speculation is a distraction for Newcastle, who beat Dubnica 5-1 in the InterToto Cup on Saturday, ahead of the new Premiership season next month.
It comes just two months after Manchester United was taken private by US sports tycoon Malcolm Glazer.
Former Manchester City defender Ray Ranson is also making a second attempt to buy into Aston Villa after an offer from a consortium he was part of was rejected by chairman Doug Ellis 14 months ago.
