More takeover talk with Belgravia apparently stepping up their interest in United, say the Journal anyway…

The Belgravia Group are planning to step up their Newcastle United takeover bid as Glenn Roeder’s team continues to struggle in the Premiership.

United’s 1-0 defeat at local rivals Middlesbrough on Sunday brought the first chants for the removal of chairman Freddie Shepherd in 18 months and reports of the mounting discontent had made their way to the Belgravia Group’s Jersey headquarters yesterday.

The secretive investment group remain tight-lipped about the progress of their talks but, although Shepherd is reluctant to sell his 29% stake, the group have confirmed they will continue to discuss a takeover with all shareholders - not just Shepherd - and are confident a compromise can be reached. It is thought that the key to their plan are the shares owned by Sir John Hall and his family, which total 40.8%.

The Halls are rumoured to be keen to cash in on their stake and have, since 1998, already sold 21.35% of their shares for a total of £20.35m. Shepherd, who does not want to sell, has, in contrast, been gradually building up his own stake in the club from 7% to 29% through his company Shepherd Offshore since the club first floated on the stock market in 1997.

“We are talking with all Newcastle shareholders about a possible bid and we are still hopeful that we can come to a deal which benefits all parties,” said a Belgravia spokesman last night. “Unfortunately, because of stock exchange and plc rules, we cannot go into specific details, but we are still very interested in Newcastle United and we want a deal to happen.”

The Journal understands that Belgravia will step up their efforts to persuade major shareholders to sell to them in light of the poor results on the pitch which have led to increased supporter unrest. Their hope centres on the fact that Shepherd’s resolve to hang on to his shares will lessen if he becomes the target for supporter frustration with the team’s poor performances.

There are still no signs that United’s embattled chairman is willing to loosen his grip. However, according to some financial experts, that might not save him from a hostile takeover attempt.

“Freddie Shepherd has enough shares to block the Belgravia Group from taking the club private, which is what they want to do,” said Tom Cannon, professor of business at Kingston University in Hull. “He can easily stop them from doing that by refusing to sell his shares and that might put them and any other potential investors off.

“But the problem is, with the Halls keen to sell and with lots of small shareholders, Belgravia can easily take their shares beyond the 50% mark and take control of the club.

“Freddie is, to all intents and purposes, no matter what has been said and written about him in the past, a supporter of the club. But if Belgravia chose to take that route, it would put him in an uncomfortable position because he will be the minority shareholder at a high-profile club and that isn’t an attractive proposition.”

Despite the strict rules governing proposed takeovers of public companies, rumours had been circulating that an offer valuing the club at around £80m had been made in private by Belgravia.

That, though, was denied by Belgravia yesterday, who insist they would have to release the details of any formal bid to the stock exchange.

There have also been reports of a second, North-East based, investment group showing interest in the club because of the lack of progress with Belgravia, although the Jersey-based company remain confident that they are still in pole position as they study the club’s finances before deciding whether to make a formal offer.

The spokesman added: “When a bid is made, or if the talks collapse and we end our interest, we will have to make a statement then. At the moment, we are still extremely interested and the talks are continuing.”

Source: The Journal