Newcastle in middle of takeover drama
A 'Malaysian connection' among three parties set to make bid for
club
July 27, 2005
The Straits Times
LONDON - NEWCASTLE United could become the subject of a fierce
takeover battle after a £20 million (S$58 million) bid was lodged
for club president John Hall's stake on Monday night.
Hall owns 28.5 per cent of the club's shares, and has yet to
confirm whether he will sell his stake.
But, if the mystery buyers succeed, they will be close to the 30
per cent stake that automatically requires a full-scale
takeover.
That would throw the club into a period of uncertainty behind the
scenes, from chairman Freddy Shepherd to manager Graeme Souness
who, even before this, was named by bookmakers William Hill as the
favourite to become the first to be sacked next season.
Speculation as to the identity of the buyer ranges from a
'cash-rich British entrepreneur' who wants former manager Kevin
Keegan back at the club, to a consortium involving Ray Ranson - the
former Newcastle player who played under Keegan - to a 'Malaysian
connection'.
The existence of a potential buyer was revealed on Monday in a
statement to the stock market by Hall, after an 18 per cent rise in
the club's share price, taking it to its highest level for more
than four years.
The club are now valued at £75.6 million. This is up from £65
million but still below the £193 million when they were floated on
the stock market in April 1997, reported The Independent.
Newcastle are Europe's 11th biggest club in revenue terms,
according to Deloitte & Touche, with sales of 137 million euros
(S$274 million) in 2003-04.
The British entrepreneur is rumoured to be Graham Wylie, whose
wealth from software and horse racing is estimated at £180 million.
He is said to be the 20th richest man in the country.
He allegedly has had a bid for the Hall family's shares in the club
rejected on a previous occasion. The Malaysians, it is said, wish
to develop existing plans for a casino and leisure complex at St
James' Park.
Any takeover deal will probably need the blessing of Freddy
Shepherd, the chairman, who owns 27 per cent of the club.
But he has said that he would welcome finding a 'Geordie Roman
Abramovich' who could pump millions into the club like the Chelsea
owner, and both he and Hall would be glad to hand over the reins
after so much bad publicity during their reign.
Shepherd and Hall's son Douglas, who owns another 12.8 per cent,
were infamously caught boasting of ripping off fans and calling
Newcastle women 'dogs' in a tabloid sting operation during a 1998
visit to a bordello in Marbella.
Last season, Newcastle were rocked by a series of bad-boy antics,
including an on-field punch up between team-mates Kieron Dyer and
Lee Bowyer, the war of words between Souness and Craig Bellamy and
the vocal unhappiness of winger Lauren Robert.
Bellamy and Robert have since left the club.
