Financial intrigue

Announcement to the Stock Exchange, Monday from NEWCASTLE UNITED FC plc:

Clarification on Share Price Movement

The Board of Newcastle United Plc notes the recent press speculation and today's share price movement.

The Board confirms that this afternoon it has been informed by Sir John Hall representing Wynyard (Guernsey) Limited, which owns approximately 28.5% of Newcastle United Plc, that it has received an approach to acquire its shareholding, which may or may not lead to the disposal of its stake.

A further announcement will be made if appropriate.

From The Sporting Life, Monday:

The announcement followed a 18% spike in the share price of Newcastle on Monday 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 £75.6million, up from £65million on Monday morning.

Sir John, 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. Sir John was instrumental in bringing 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.