Newcastle in talks over possible takeover

[Happy Face 29]

Look North made a passing mention about it after their piece on Sir Bobby. They seemed to think they've acquired or are close to acquiring Sir John Hall's shares.

182334[/snapback]

 

 

So that's less than 30% right?

 

No take-over?

[Zathras 266]

Look North made a passing mention about it after their piece on Sir Bobby. They seemed to think they've acquired or are close to acquiring Sir John Hall's shares.

182334[/snapback]

 

 

So that's less than 30% right?

 

No take-over?

182336[/snapback]

 

Depends on if it's just Sir John or if Dougie's shares are involved too. IIRC SJH has 28% or so and Douggie has another 12%.

[Gemmill 46001]

Belgravia Group targets Newcastle United

 

By James Wilson and Malini Guha

 

Published: August 22 2006 03:00 | Last updated: August 22 2006 03:00

 

Newcastle United has become the latest English Premiership football club to attract investor interest, with a Jersey-based investment company admitting that it is considering an offer.

 

Shares in Newcastle jumped almost 10 per cent yesterday after the Belgravia Group, alittle-known private company, confirmed it was "examining the potential opportunity" of acquiring the club.

 

Sir John Hall, the local entrepreneur who controls about 28.8 per cent of Newcastle United, has previously indicated that he would like to sell his stake and in June he revealed talks with Polygon, a US hedge fund.

 

However Freddy Shepherd, Newcastle's chairman, also owns about 29 per cent and is understood to be reluctant to sell.

 

Earlier this month Randy Lerner, a US businessman, had a £62.6m offer accepted for Aston Villa - like Newcastle, a well-supported club that has failed to achieve success on the pitch for many years.

 

Richard Hunter, head of UK equities at Hargreaves Lans-down stockbrokers - who last week predicted that the more marketable brand of Newcastle was likely to be one of the next acquisition targets - said the sector had come back in vogue this year for a number of reasons.

 

Mr Hunter said: "There is a perception that players' wages have started to plateau, record television football rights have been negotiated and the World Cup has generated interest."

 

In its most recent full-year results for the year to July 2005 Newcastle made a small pre-tax profit of £16,000 on turnover of £87m. However, the company is expected to report a loss this year after its failure last year to qualify for lucrative European competitions.

 

Belgravia, which also has offices in London, is backed by a group of wealthy investors and chaired by Duncan Hickman, formerly a fund manager at Liberty Ermitage. The company has investments in telecommunications, marketing and management services, as well as an asset management subsidiary.

 

Shares in Newcastle closed at 67p, giving the company a market capitalisation of £89m. The company floated in 1997 at 135p, valuing it at £193m.

 

Wealthy businessmen have poured hundreds of millions into British football assets in recent years. The money has inflated salaries and transfer fees but successful returns have been elusive, even for the richest clubs.

 

Last year Newcastle United finished seventh in the domestic league and has now qualified for European competition this year.

 

Copyright The Financial Times Limited 2006

[Jimbo 175]

Takeover bid' is a fog on the Tyne

 

http://www.telegraph.co.uk/sport/main.jhtm...22/sfnnew22.xml

 

(Filed: 22/08/2006)

 

Newcastle United were on full takeover alert last night after Belgravia Group, a secretive investment company based in Jersey, confirmed they were considering a bid for the club.

 

A week after American billionaire Randy Lerner made a £62.6 million bid for Aston Villa, Belgravia revealed they were interested in Newcastle, which could be worth about £100m.

 

Although they refused to reveal the identity of those behind the approach, Belgravia quickly played down speculation that the company were a front for Sheikh Ahmed Bin Saeed Al Maktoum, the ruler of Dubai.

 

Belgravia acted as advisers to Maktoum on a failed bid to buy the Jordan Forumla One team in 2004 but a spokesman described the link with Newcastle as a "red herring", dashing hopes on Tyneside that they would soon have their own oil-rich tycoon to rival Chelsea's Roman Abramovich.

 

Nevertheless, Belgravia insist they have assets of £1billion and are serious about making a bid for control of St James' Park, to turn the club into one of the most powerful forces in European football.

 

In a statement released to the Stock Exchange yesterday morning, Belgravia said: "Following recent press speculation, the Belgravia Group confirms that it is examining the potential opportunity of acquiring Newcastle United plc, which may or may not lead to an offer for the company being made by Belgravia."

 

Although at a very early stage Belgravia, who manage the finances of high-rolling clients like Maktoum, are believed to have held talks with former Newcastle chairman Sir John Hall and his son, Douglas, about acquiring their 40 per cent holding.

 

Both men are now based abroad and it is believed their stake has been for sale for at least a year. In June, Sir John confirmed he had held talks with an American hedge fund, Polygon, about a possible sale of his shares in the club.

 

With Belgravia prepared to offer a premium of between 10 and 15 per cent per share, the Halls stand to make a profit of more than £30 million on the estimated £3 million Sir John has spent in building his stake over 16 years.

 

But even if Belgravia secure the Halls' stake, they face a major battle for control as chairman Freddy Shepherd has repeatedly indicated he will not sell his 28.5 per cent holding. In fact he has been steadily building his stake over the last 18 months.

 

Without his shares any buyer would not be able to obtain the 75 per cent needed to take the company private.

 

Shepherd's reluctance to do a deal will only increase the price. Shares in Newcastle climbed 6p to 67p yesterday on news of the interest from Belgravia, valuing the club at just under £89 million.

 

Another potential stumbling block is the £55 million securitised loan Newcastle took out in 1999 to fund the redevelopment of St James' Park. The 17-year loan, which is due to be repaid in 2016, has a change-of-control clause which would allow the six British and American banks behind the deal to demand early repayment or renegotiate the annual 7.43 per cent interest rate.

 

One possible solution which could suit Shepherd and the banks could be for the Newcastle chairman to offer Belgravia an option on his shares which would see him stay on for a fixed period of time to smooth the takeover process.

 

Until Belgravia make their next move, the identity of their backers will remain shrouded in mystery. Little is known about the company's chairman, Duncan Hickman, who set up the investment group with fellow banker Ron Mitchell in 2000 after they sold the successful hedge fund Liberty Ermitage.

 

Hickman, 38, who lives in Jersey, is not thought to have any connection to football. But the company, who also have interests in aviation, construction and hospitality, have a strategic marketing arm that counts Arsenal and Everton among their clients.

 

Despite the potential battle for control any bidder would face, Newcastle remain an attractive proposition. One leading City analyst said: "They have a fully refurbished stadium with a capacity of 52,000, modern training ground and a very loyal and passionate fan base."

[Ted Maul 0]

Takeover bid' is a fog on the Tyne

 

http://www.telegraph.co.uk/sport/main.jhtm...22/sfnnew22.xml

 

(Filed: 22/08/2006)

 

Newcastle United were on full takeover alert last night after Belgravia Group, a secretive investment company based in Jersey, confirmed they were considering a bid for the club.

 

A week after American billionaire Randy Lerner made a £62.6 million bid for Aston Villa, Belgravia revealed they were interested in Newcastle, which could be worth about £100m.

 

Although they refused to reveal the identity of those behind the approach, Belgravia quickly played down speculation that the company were a front for Sheikh Ahmed Bin Saeed Al Maktoum, the ruler of Dubai.

 

Belgravia acted as advisers to Maktoum on a failed bid to buy the Jordan Forumla One team in 2004 but a spokesman described the link with Newcastle as a "red herring", dashing hopes on Tyneside that they would soon have their own oil-rich tycoon to rival Chelsea's Roman Abramovich.

 

Nevertheless, Belgravia insist they have assets of £1billion and are serious about making a bid for control of St James' Park, to turn the club into one of the most powerful forces in European football.

 

In a statement released to the Stock Exchange yesterday morning, Belgravia said: "Following recent press speculation, the Belgravia Group confirms that it is examining the potential opportunity of acquiring Newcastle United plc, which may or may not lead to an offer for the company being made by Belgravia."

 

Although at a very early stage Belgravia, who manage the finances of high-rolling clients like Maktoum, are believed to have held talks with former Newcastle chairman Sir John Hall and his son, Douglas, about acquiring their 40 per cent holding.

 

Both men are now based abroad and it is believed their stake has been for sale for at least a year. In June, Sir John confirmed he had held talks with an American hedge fund, Polygon, about a possible sale of his shares in the club.

 

With Belgravia prepared to offer a premium of between 10 and 15 per cent per share, the Halls stand to make a profit of more than £30 million on the estimated £3 million Sir John has spent in building his stake over 16 years.

 

But even if Belgravia secure the Halls' stake, they face a major battle for control as chairman Freddy Shepherd has repeatedly indicated he will not sell his 28.5 per cent holding. In fact he has been steadily building his stake over the last 18 months.

 

Without his shares any buyer would not be able to obtain the 75 per cent needed to take the company private.

 

Shepherd's reluctance to do a deal will only increase the price. Shares in Newcastle climbed 6p to 67p yesterday on news of the interest from Belgravia, valuing the club at just under £89 million.

 

Another potential stumbling block is the £55 million securitised loan Newcastle took out in 1999 to fund the redevelopment of St James' Park. The 17-year loan, which is due to be repaid in 2016, has a change-of-control clause which would allow the six British and American banks behind the deal to demand early repayment or renegotiate the annual 7.43 per cent interest rate.

 

One possible solution which could suit Shepherd and the banks could be for the Newcastle chairman to offer Belgravia an option on his shares which would see him stay on for a fixed period of time to smooth the takeover process.

 

Until Belgravia make their next move, the identity of their backers will remain shrouded in mystery. Little is known about the company's chairman, Duncan Hickman, who set up the investment group with fellow banker Ron Mitchell in 2000 after they sold the successful hedge fund Liberty Ermitage.

 

Hickman, 38, who lives in Jersey, is not thought to have any connection to football. But the company, who also have interests in aviation, construction and hospitality, have a strategic marketing arm that counts Arsenal and Everton among their clients.

 

Despite the potential battle for control any bidder would face, Newcastle remain an attractive proposition. One leading City analyst said: "They have a fully refurbished stadium with a capacity of 52,000, modern training ground and a very loyal and passionate fan base."

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Fuck. Do you think i'll be able to get a refund on my tea towel?

[Rob W 0]

"Belgravia acted as advisers to Maktoum on a failed bid to buy the Jordan Forumla One team in 2004 but a spokesman described the link with Newcastle as a "red herring", "

 

A russian fishing tycoon??

[ChezGiven 0]

Under different financial rules you can set up alternative types of funds that allow you to legally hide the names of the investors. In standard funds this is not possible but in a Hedge it is.

 

They can say what they like about the investors (ie the people whose capital it is, Belgravia are just their agents) and never reveal their identity.

[Gemmill 46001]

Oliver's latest revelation:

 

Certainly, after the work he has put in over the weekend on the Martins and Boumsong deals, and the proud way he showed me around the new five-star United dressing room at St James' Park yesterday afternoon, Shepherd did not give the impression that he was willing to sell his 28% shares to the Jersey-based Belgravia Group.

 

Shepherd likes the new dressing rooms to much to accept 29% of the £80-odd million the club is worth. You heard it here first.

 

I wonder if they towelled each other down at the end of it.

[Jimbo 175]

This morning on Talksport, Alan Brazil says talk in the horseracing industry is that the Sheik is definetly behind the Newcastle bid.

 

Take it with a pinch of salt as he was probably pissed !

[Craig 6700]

Yeah I heard that too. Says it's from a very reliable source in London.

 

Also claimed that the Sheik was wanting Man Utd before Glazer steamed in - he's wanted an English football club for a while now

 

So if it does turn out to be true, there's the added bonus that it'll piss the Mancs off no end!

 

The other thing that's on my mind is that some areas of the press (most notably Oliver who I think is 'bricking it' personally) claim that Fat Fred won't sell. Surely though if the Halls sell to whoever it is, that's 40% which is enough to launch a full takeover bid anyway?

[Gemmill 46001]

Shepherd can still resist though, Craig. He's not obliged to sell if he doesn't want to.

 

Personally I think all the talk of Shepherd resisting is a hangover from last time. I don't see the point in anyone launching a takeover bid unless they've received assurances from Shepherd that he'll sell at the right price. It's no good any potential suitor only negotiating for Hall's shares if they want full ownership of the club. If an official bid gets launched I would assume that they've already talked to Shepherd and got his agreemen on it, otherwise they're wasting their time unless they're happy with just a controlling ownership.

[adios 717]

Shepherd can still resist though, Craig.  He's not obliged to sell if he doesn't want to.

 

Personally I think all the talk of Shepherd resisting is a hangover from last time.  I don't see the point in anyone launching a takeover bid unless they've received assurances from Shepherd that he'll sell at the right price.  It's no good any potential suitor only negotiating for Hall's shares if they want full ownership of the club.  If an official bid gets launched I would assume that they've already talked to Shepherd and got his agreemen on it, otherwise they're wasting their time unless they're happy with just a controlling ownership.

183350[/snapback]

 

They may feel once they have the other 71% and FS is just looking at dividend payments (which they could fuck about with in the short term) he'll sell up.

[Gemmill 46001]

Shepherd can still resist though, Craig.  He's not obliged to sell if he doesn't want to.

 

Personally I think all the talk of Shepherd resisting is a hangover from last time.  I don't see the point in anyone launching a takeover bid unless they've received assurances from Shepherd that he'll sell at the right price.  It's no good any potential suitor only negotiating for Hall's shares if they want full ownership of the club.  If an official bid gets launched I would assume that they've already talked to Shepherd and got his agreemen on it, otherwise they're wasting their time unless they're happy with just a controlling ownership.

183350[/snapback]

 

They may feel once they have the other 71% and FS is just looking at dividend payments (which they could fuck about with in the short term) he'll sell up.

183360[/snapback]

 

They might do, but if he resisted the initial takeover, he'd probably do so in the knowledge that he wouldn't get as attractive an offer again, with the premium associated with the takeover no longer being available. So I think if he was really going to sell up it would be on a takeover, not after.

[adios 717]

They might do, but if he resisted the initial takeover, he'd probably do so in the knowledge that he wouldn't get as attractive an offer again, with the premium associated with the takeover no longer being available.  So I think if he was really going to sell up it would be on a takeover, not after.

183378[/snapback]

 

While Shepherd technically has enough to stop a bid to take it private, I don't think he will realistically feel he can stop a powerful approach, although I do still think they'd offer him premium price after the initial takeover having threatened not to.

 

Basically, if he tries to resist, this Abrahamovich fella's going to take him down to old Bethlehem town.

[Gemmill 46001]

He'll Sheikh 'n' Vac his entire ass.

[zico martin 90]

He'll Sheikh 'n' Vac his entire ass.

183390[/snapback]

 

[Guest alex]

I reckon Shepherd will publicly pretend to resist offers but privately he'll be happy to take the money and run. And whatever you think of him, I don't think you can blame him for doing that.

[Gemmill 46001]

I reckon Shepherd will publicly pretend to resist offers but privately he'll be happy to take the money and run. And whatever you think of him, I don't think you can blame him for doing that.

183450[/snapback]

 

Correction: take the money and turbo-waddle.

[Guest alex]

I reckon Shepherd will publicly pretend to resist offers but privately he'll be happy to take the money and run. And whatever you think of him, I don't think you can blame him for doing that.

183450[/snapback]

 

Correction: take the money and turbo-waddle.

183451[/snapback]

Take the money and roll

[ewerk 31195]

I reckon Shepherd will only sell up if he is told he can stay on as chairman ala Bates at Chelsea. I wouldn't mind him doing that as he's not the worst in the world.

[ChezGiven 0]

I reckon Shepherd will publicly pretend to resist offers but privately he'll be happy to take the money and run. And whatever you think of him, I don't think you can blame him for doing that.

183450[/snapback]

 

 

Aye basically.