Possible Toon Takeover???

deise_boi

Saw this on SSN earlier, I heard the 'Newcastle are in talks..' as it was being announced and thought, finally a signing! But alas, it was not to be. However the story is that Newcaslte are in talks with a possible takeover.

"Newcastle are in talks regarding a possible takeover, it emerged on Saturday night. Magpies chairman Freddie Shepherd has opened discussions with the Belgravia Group regarding a possible deal for the North East club.
Talks are expected to continue with the multinational group in the coming days, with the the club's board keen to finalise The Magpies' future.

While there may be changes afoot in the boardroom, Glenn Roeder's side got their Premiership campaign off on a sound footing. Goals from Scott Parker and Shola Ameobi earned a 2-1 victory over Wigan at St James's Park."

If it does happen i hope a few players are brought in first. We dont want the board concentrating on the takeover and not transfers.

Thoughts?

kinaldo

Could be good, no more FFS for a start. If these takover talks disrupt the club's transfer dealings before the transfer window deadline then whoever's in charge can expect an immediate backlash from the fans afterwards.

el rabitos

just what newcastle need, more money

evilhomer

No good to us in September!

We could do with getting rid of Sheppard though, He really has a knack for overpaying (wages and transfers). Look at Dyer for example on huge wages 80k a week and hasn't played 20 games in three years!!!!

kinaldo

http://business.timesonline.co.uk/article/0,,8209-2320235,00.html

Jersey investor kicks off bid approach for Newcastle United
John Waples

THE future ownership of Britain’s football Premiership will take another dramatic twist this week when Belgravia Group, a secretive Jersey-based investment company, confirms it has made an approach to buy Newcastle United.
Newcastle, which has a market value of £81m, is now the second Premiership club that is in active bid talks. Last week the American billionaire Randy Lerner tabled an offer to buy Aston Villa.



Belgravia, which runs a range of investments from property to equity and derivative funds, is headed by two experienced fund managers, Ron Mitchell and Duncan Hickman. They manage more than £1 billion for wealthy investors and made their fortune building and later selling a hedge-fund business called Liberty Ermitage.

A spokesman for Belgravia described the potential acquisition of Newcastle as “an attractive opportunity” but added: “It is at an early stage and nothing is finalised.” The group is being advised in the deal by Strand Partners, a boutique London investment bank.

It is understood that Mitchell and Hickman have held extensive talks with Sir John Hall, the northeast entrepreneur, who controls 28.8% of the quoted club. His son Douglas owns an additional 12% of the company and it is thought that if his father sells he is likely to as well.

Hall, who unlike his son is no longer on the board of Newcastle, has been offered the role of life president if the club is taken over. Belgravia also intends to offer Alan Shearer, the side’s former captain and striker, a role in the club.

As part of its takeover plans, Belgravia has set aside a pool of money to buy in more football talent and show the Toon army that it is a long-term owner that wants to build on the club’s success.

Belgravia, which Hickman chairs, intends to buy out the 28% stake held by Newcastle’s chairman, Freddy Shepherd. This could prove the sticking point, because up to now Shepherd has resisted approaches to sell out and has instead been increasing his stake.

The Jersey company is sitting on a huge cash pile and the equity required to finance the takeover will not be taken from its funds under management.

This is the second approach Hall has had for his stake. Two months ago The Sunday Times revealed that Polygon, a US hedge fund, had held talks with Hall. Polygon has been working with UBS, the investment bank, on a potential takeover and it, too, wants complete control of the club. But it is thought Polygon’s interest has waned.

Despite the financial risk attached to owning a football club, there appears to be no shortage of people wanting to take on the challenge. The Glazer family now controls Manchester United and the Russians Roman Abramovich and Alexandre Gaydamak own Chelsea and Portsmouth.

Now there is speculation that a Korean investor could buy the Premiership newcomer Reading from John Madejski.

According to its last full-year accounts, Newcastle reported sales of £87m and a drop in its cash position from £26.2m to £17.6m. Analysts say an offer to acquire the company is likely to be at a 10% to 15% premium to Friday’s closing price of 61p a share.

For Hall Sr, his decision to sell his Newcastle stake marks the end of a broken dream. He made his fortune after developing the Metro Centre, the huge retail complex on the outskirts of Gateshead. He banked £70m when the centre was sold and then embarked on a grandiose campaign to turn Newcastle into the “European city of sporting culture”.

He bought the football club and then spent millions of pounds adding rugby, basketball and ice-hockey teams. But Hall’s vision hit the buffers and he lost millions of pounds.

He is still held in high esteem by the local community, although they are less affectionate towards his son.