By Kev Luff
July 26 2005

Speculation is mounting that Newcastle could be the taken over after shareholder Sir John Hall was approached about selling his stake in the Tyneside club. Speculation is mounting that Newcastle United could be the taken over after majority shareholder Sir John Hall was approached about selling his stake in the Tyneside club. The millionaire businessman has confirmed in a statement to the stock market than an unnamed party has expressed an interest in buying his 28.5% majority The announcement followed a 18% spike in the share price of Newcastle on Monday as investors speculated that it could follow Manchester United in being the latest high profile club to be taken over.

The rise in the price of the shares sees the club now valued at £75.6 million as opposed to £65 earlier on Monday. Sir John Hall took control of Newcastle in 1991 and is currently the club’s life president. He revealed the approach in response to press reports that two groups of businessmen were eyeing up his stake in Newcastle. According to a newspaper report one consortium is being led by a 'cash-rich British entrepreneur' who would like former manager Kevin Keegan to return to the club in a senior role. However the report also suggests that a Malaysian-based group is also keen on Newcastle and its existing plans for a casino and leisure complex at St James' Park.

Any deal for a takeover will doubtless need the blessing of current chairman Freddy Shepard who owns 27% of Newcastle United. He could buy more shares to take him up to the 29.9% limit before he would have to make a mandatory offer for the whole club. The talk of a takeover for the club could not have come at a worse time for Newcastle who are preparing for the new season and finding it a struggle to bring in new faces.

(Source: NorthEastFootball.co.uk)

Announcement to the Stock Exchange, Monday from NUFC 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.