Investors eye Newcastle Utd bid

A Jersey-based firm has said it is interested in buying Premiership football club Newcastle United.

The Belgravia Group said it is in early talks with the club, which is valued at about £81m on the London stock market.

The announcement came after Belgravia was reported to have met majority shareholder Sir John Hall who, with his son, owns more than 40% of the club.

Newcastle chairman Freddy Shepherd, who owns a 28% stake in the football club, is expected to resist any buyout bid.

Newcastle shares jumped on the news, closing 9.8% higher at 67 pence.

'Most attractive'

Belgravia, a private company with interests including construction, hospitality, aviation and sports marketing said that it was examining the potential opportunity of acquiring Newcastle, which may or may not lead to an offer for the company.

The most attractive clubs are always the ones that have got the history and the geography behind them, Bill Gerrard, Leeds University Business School

"A further statement will be made if appropriate," Belgravia said.

In June, Sir John revealed that he had received "expressions of interest" in his shares.

In a statement on Monday, Newcastle said: "The club's position remains the same as it was in June when we were first informed that Sir John Hall was in talks with other parties.

"We communicated our position to the market in June and we have nothing further to add."

A number of large investors have been buying stakes in English and Scottish football clubs.

Last week, US billionaire Randy Lerner made an offer to buy another Premiership team, Aston Villa.

Bill Gerrard of Leeds University Business School said that investors were keen to get access to English football because "the Premiership is the top domestic football league in the world".

"The most attractive clubs are always the ones that have got the history and the geography behind them," he explained.

"Newcastle look the most obvious target with a completed stadium, a very large and loyal fan base, and a history of being in the upper echelons of English football."