Toon takeover rejected for now ?

[Jimbo 172]

News of the Jersey-based investment group's interest surfaced last month and while their approach has been rebuffed, another offer is expected.

 

Sir John Hall, who owns 28.8% of the club and his son Douglas, who owns 12% along with chairman Freddy Shepherd (28%) have reportedly rejected an initial approach, although talks are said to be ongoing.

 

The Sunday Telegraph quotes an executive close to the negotiations as saying: "Talks are ongoing and there seems to be every chance of a deal being struck."

 

The club is valued at £91million and Shepherd will reportedly only accept an offer of more than £100million.

[Baggio 0]

The full article.

 

http://www.nufcmismanagement.info/shepherd-sale4.html

 

 

Newcastle United Rejects Initial Offer

 

By Andrew Murray-Watson, The Sunday Telegraph, October 1, 2006

 

The major shareholders in Newcastle United have rejected a bid for the listed football club from Belgravia Group, a secretive Jersey-based investment group.

 

It is believed that Sir John Hall, who controls 28.8 per cent of the club, his son Douglas, who owns an additional 12 per cent, and Freddy shepherd, the chairman, who owns a further 28 per cent, have rejected an initial approach.

 

However, talks are continuing and Strand Partners, the boutique investment bank, is understood to be optimistic that the trio will accept a revised offer.

 

An executive close to the negotiations said: "Talks are ongoing and there seems to be every chance of a deal being struck."

 

Newcastle is valued at £91 million and it is believed the Halls and Shepherd will only accept a bid significantly in excess of £100 million.

 

Sir John will be offered the title of president at Newcastle, should a deal with Belgravia be concluded.

 

Newcastle also received an approach two months ago from Polygon, a publicity shy US hedge fund.

 

The bid for the club adds to the growing interest in top-flight English football from outside investors.

 

Several clubs, including Chelsea, which is owned by Roman Abramovich, the Russian billionaire, and Portsmouth, owned by Alexandre Gaydamak, are in the hands of extremely wealthy foreigners.

 

Earlier this month Randy Lerner, the US sports billionaire who owns Cleveland Browns American football team, bought Aston Villa.

 

Increased TV revenues from Sky, the satellite broadcaster, has also attracted buyers looking for a quick return on the investment.

 

Prominent figures within English football, including Arsene Wenger, the respected manager of Arsenal, have warned that the influx of foreign owners into the Premiere League could result in English football losing control of its destiny.

 

The "bung" crisis engulfing English top flight football in controversy could cool interest from overseas buyers.

 

Lord Stevens, the former head of the Metropolitan Police, is set to publish his report on transfer activity in the Premier League tomorrow.

 

He is expected to highlight a large number of transfers as worthy of further investigation to establish whether club officials or players' agents took backhanders to secure deals.

[Dr Gloom 21760]

i hope to god hall persuades shepherd to sell

[Lazarus 0]

i hope to god hall persuades shepherd to sell

 

You should always be careful of what you wish for.

[LeazesMag 0]

i hope to god hall persuades shepherd to sell

 

now, if you want a company like that taking over the club, you really are showing your abject stupidity

Edited October 1, 2006 by LeazesMag

[Matt 0]

i hope to god hall persuades shepherd to sell

 

now, if you want a company like that taking over the club, you really are showing your abject stupidity

 

Depends what their intentions are and what their role is in the deal. They could be buying it for someone else and making a tidy commission for keeping the purchaser out of the spotlight.

 

I won't go into a long drawn out post, but I'm not sure why an investor would see NUFC as a great prospect and makes me question who is behind the deal. I don't beleive for a minute an institutional investor would sit down and see us as a prospect. The numbers just don't add up.

[Ted Maul 0]

I really hope Freddy sells up. I'd much rather have a "secretive investment group" than a lazy, big mouthed Chairman who talks complete and utter shite everytime he opens his mouth and knows fuck all about running a football club. It would take a complete bunch of arses to make more of a hash that Fat Fred has over the past few years so I don't have too mant reservations about this. Everyone goes on about asset stripping and the like but the only way to make a football club profitable is to make it succesful.

[geordieshandy 0]

i hope to god hall persuades shepherd to sell

 

now, if you want a company like that taking over the club, you really are showing your abject stupidity

 

Depends what their intentions are and what their role is in the deal. They could be buying it for someone else and making a tidy commission for keeping the purchaser out of the spotlight.

 

I won't go into a long drawn out post, but I'm not sure why an investor would see NUFC as a great prospect and makes me question who is behind the deal. I don't beleive for a minute an institutional investor would sit down and see us as a prospect. The numbers just don't add up.

 

I think things like this carry on next sunday is why companies might see us as a good investment as well as the Goal film, along with the way the third biggest stadium in the country is filled week in week out. That's a massive turnover and a lot of publicity in not a classically popular (in a worldwide sense) club. If Freddie has achieved nothing else in his reign, he's managed to get the club seen a lot more wide reaching circles than is expected. It's not success in the normal sense of the word but it is an achievement. Whether it's to plump his already inflated ego or not who knows.

[Matt 0]

We don't make money, though and that's the killer. Not proper money. A few million here or there on £80-100m turnover is spare change. The only season we've really made a killing is when we were in the CL under Robson and reached the 2nd group stage.

 

No-one's going to be able to justify their investment by selling players, witholding transfer funds, selling naming rights to the ground or jacking up ticket prices. All of these will result in losing money- one of the reasons why I'm not as sceptical about this takeover as perhaps a Man Utd fan was of the Glazers (as Man Utd were already a cash cow ripe for milking).

 

I'd love to know what their business plan is, because I can't see this club generating big bucks year-on-year. I can see us generating reasonable profit but not massive money. Until we know who's behind this deal, it's impossible to tell whether it would be the dawn of a new era or the beginning of the end.

[Gemmill 44109]

United knock back bid

 

By Rebekah Ashby, The Journal

 

Newcastle United has rejected an initial bid by secretive Jersey investors to buy the club because it is holding out for more than £100m, it was reported yesterday.

 

Sir John Hall, his son Douglas, and Freddie Shepherd are said to have knocked back an initial approach by Belgravia Group for NUFC because they are hopeful of a better deal.

 

According to reports yesterday, Newcastle is valued at £91m but the Halls and Shepherd are said to only be willing to accept a bid "significantly in excess of £100m".

 

Last night analysts said news of tough negotiations comes as no surprise as the number of clubs available to buy in the Premierships decreases.

 

Talks are said to be continuing and the investment bank handling the deal is understood to be optimistic that the trio will accept a revised offer.

 

A source close to the deal said: "Talks are ongoing and there seems to be every chance of a deal being struck."

 

Andrew Miller, regional centre head of Gerrard Investment Management in Newcastle, said: "The impression has always been that the Halls probably did want out but it was more doubtful whether Freddie Shepherd wanted to sell.

 

"Although he hasn't come out with anything firm, there have been suggestions that he would be prepared to sell if the price was right.

 

"There are fewer and fewer clubs of Newcastle's size available in the marketplace so if people want to buy a Premiership club with a big fan base like Newcastle then scarcity value is going to push them far over value."

 

Belgravia Group confirmed in August it was interested in buying the Magpies.

 

It said in a statement six weeks ago: "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."

 

Rumours of a takeover first surfaced last summer when club president Sir John Hall announced that he was in talks about selling his 28.8% stake and again in June when US hedge fund Polygon Investments was said to be interested.

 

While Sir John Hall and son Douglas, who owns a further 12%, are said to be open to the idea of selling their holdings, United chairman Freddie Shepherd has been adding to his 28% stake and could even launch a counter-bid if Belgravia proceed.

 

As part of its plans, Belgravia - which manages more than £1bn for wealthy investors - is believed to have set aside a pool of money to buy in top players.

 

Now Belgravia is reported to have offered the role of life president to Sir John, who developed Gateshead's MetroCentre and banked £70m when he sold it. There would also be a role at the club for former captain Alan Shearer under the Belgravia deal.

 

Shares in Newcastle United closed at 67.10p on Friday night, compared to 40.25p earlier this year.

 

A spokeswoman for Newcastle United plc declined to comment on the story last night.

[adios 717]

I suspect that a secret consortium headed by Shepherd is behind this offer, and that in a move of sheer business genius that us mere mortals would never understand, he's playing both sides off against each other.

 

I will put my balls on the table here and say I hope this deal goes through.

[Matty 0]

United knock back bid

 

By Rebekah Ashby, The Journal

 

Newcastle United has rejected an initial bid by secretive Jersey investors to buy the club because it is holding out for more than £100m, it was reported yesterday.

 

Sir John Hall, his son Douglas, and Freddie Shepherd are said to have knocked back an initial approach by Belgravia Group for NUFC because they are hopeful of a better deal.

 

According to reports yesterday, Newcastle is valued at £91m but the Halls and Shepherd are said to only be willing to accept a bid "significantly in excess of £100m".

 

Last night analysts said news of tough negotiations comes as no surprise as the number of clubs available to buy in the Premierships decreases.

 

Talks are said to be continuing and the investment bank handling the deal is understood to be optimistic that the trio will accept a revised offer.

 

A source close to the deal said: "Talks are ongoing and there seems to be every chance of a deal being struck."

 

Andrew Miller, regional centre head of Gerrard Investment Management in Newcastle, said: "The impression has always been that the Halls probably did want out but it was more doubtful whether Freddie Shepherd wanted to sell.

 

"Although he hasn't come out with anything firm, there have been suggestions that he would be prepared to sell if the price was right.

 

"There are fewer and fewer clubs of Newcastle's size available in the marketplace so if people want to buy a Premiership club with a big fan base like Newcastle then scarcity value is going to push them far over value."

 

Belgravia Group confirmed in August it was interested in buying the Magpies.

 

It said in a statement six weeks ago: "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."

 

Rumours of a takeover first surfaced last summer when club president Sir John Hall announced that he was in talks about selling his 28.8% stake and again in June when US hedge fund Polygon Investments was said to be interested.

 

While Sir John Hall and son Douglas, who owns a further 12%, are said to be open to the idea of selling their holdings, United chairman Freddie Shepherd has been adding to his 28% stake and could even launch a counter-bid if Belgravia proceed.

 

As part of its plans, Belgravia - which manages more than £1bn for wealthy investors - is believed to have set aside a pool of money to buy in top players.

 

Now Belgravia is reported to have offered the role of life president to Sir John, who developed Gateshead's MetroCentre and banked £70m when he sold it. There would also be a role at the club for former captain Alan Shearer under the Belgravia deal.

 

Shares in Newcastle United closed at 67.10p on Friday night, compared to 40.25p earlier this year.

 

A spokeswoman for Newcastle United plc declined to comment on the story last night.

 

 

 

Putting the tea on tbh.

[Gemmill 44109]

I hope it goes through an'all. We went as far forward as we would ever get under Shepherd when Robson was here. We've yet to go as far backwards as we can get under Shepherd, so the sooner we get rid, the better.

[Renton 21052]

If what is reported is true, then Shepherd is showing what his true motive for staying at the club is - money, pure and simple. If it does go through though, the more money that greedy twat takes the less will likely be available for players.

 

I agree with Skol in that the only way to make money out of a club is to make it successful (or sell the ground which obviously is not relevant here). If we can get some real professionals on board to make this a reality, then good. Another concern I have with the alternative (Shepherd staying here) is that his son will most likely take over the reigns at some point. Nepotism rarely suceeds in anything but abject failure, and Kenneth is already showing signs of being as incompetent as his Dad.

 

Better the devil you know? After Shepherd's catalogue of errors, I would be happy to take a leap of faith and accept change at the top, because otherwise I see litt le future anyway.

[The Fish 10674]

If what is reported is true, then Shepherd is showing what his true motive for staying at the club is - money, pure and simple. If it does go through though, the more money that greedy twat takes the less will likely be available for players.

 

I agree with Skol in that the only way to make money out of a club is to make it successful (or sell the ground which obviously is not relevant here). If we can get some real professionals on board to make this a reality, then good. Another concern I have with the alternative (Shepherd staying here) is that his son will most likely take over the reigns at some point. Nepotism rarely suceeds in anything but abject failure, and Kenneth is already showing signs of being as incompetent as his Dad.

 

Better the devil you know? After Shepherd's catalogue of errors, I would be happy to take a leap of faith and accept change at the top, because otherwise I see litt le future anyway.

 

pretty much my views as well, as I've said in another thread, the club hasn't gone anywhere under Shepherd, since SJH left we've stagnated and bad decision has followed bad decision. I'm fully aware that this group may be a hedge fund who are looking to make money fromt he club and have no oath of allegiance to fan or football itself... but the best way to make money from the club is to make it succesful...

 

The Glazers were also billed as soul-sucking demons, but Man U don't seem to be suffering on the pitch...

 

I know Leazes will disagree and have "facts"-agogo to back up his narrow view, but surely the time has come to kick the clown out of the big ring and let someone else have a crack of the whip

[Gemmill 44109]

"facts"-agogo

 

"I see you can't dispute the facts I am presenting to you etc. etc. "

[East Stander 0]

More on the takeover from the Guardian, the bit in bold confirms my fears that the fat twat has no intention of going but wants to keep the family silver.

 

Suitor in talks but Shepherd denies he wants to sell his stake in Newcastle

 

Michael Walker

Tuesday October 3, 2006

The Guardian

 

Freddy Shepherd, the Newcastle United chairman, said yesterday that he has no intention of selling his 29% shareholding in the immediate future, despite fresh speculation that the club are to be the subject of a takeover bid from the Jersey-registered Belgravia Group.

 

Shepherd's stance will disappoint Belgravia, Sir John Hall, who is looking to sell his 41% family stake in Newcastle, and the section of the fan base that feels it is time for a change at the top of the club.

However, there remains the possibility that such collective disappointment may be only temporary. There are no indications from Shepherd that he is willing to sell but he, Hall and Belgravia know that every business has its price.

 

Shepherd made no direct comment on a weekend report that Newcastle have received an initial bid from Belgravia. But a spokesman for one of the chairman's other business interests, Shepherd Offshore, through which Shepherd holds his club shares, said: "It is well known the Hall family want to sell off their shares. Shepherd Offshore has not agreed to sell its shares to any party or agreed to dispose of them. We will always do what is best for the business and Newcastle, not any individual."

 

Belgravia yesterday denied that it had lodged any formal bid but said that since August it has been "in discussions, which may or may not lead to a deal".

 

Shepherd Offshore's statement is public confirmation of the divergence in direction between the Hall and Shepherd families. Sir John, life president of Newcastle in retirement, was fundamental to the reinvention of the club in the early 90s and the appointment of Kevin Keegan as manager. Hall's son Douglas remains deputy chairman.

 

But it is Shepherd and his influential son Kenneth who are in daily control of the club. As such Belgravia, or any other potential buyer, would have to seek agreement to work in tandem with the Shepherds following a buy-out of the Halls, or persuade Shepherd to sell as well.

 

An approximate stock market valuation of Newcastle United is £90m but it is believed that the current hierarchy would require a sum perhaps 30% higher if they are to sell.

 

According to financial assessments of Belgravia that figure would be well within its scope but aside from confirmation of being in initial negotiations, the company has made no comment. It was established six years ago by the investment bankers Duncan Hickman and Ron Mitchell, who had sold a previously successful hedge fund.

 

Kevin Bond, meanwhile, dismissed by Newcastle last week in the wake of the Panorama programme on alleged corruption in football, has emerged as a candidate for the vacant manager's job at Bournemouth. Les Ferdinand and Robert Lee, two former Newcastle players, have also been invited for interviews.

[Gemmill 44109]

If that is true and they are holding out for closer to £120m then this deal is dead in the water. That's too big a gap between their valuation and ours.

[sweetleftpeg 0]

If what is reported is true, then Shepherd is showing what his true motive for staying at the club is - money, pure and simple. If it does go through though, the more money that greedy twat takes the less will likely be available for players.

 

I agree with Skol in that the only way to make money out of a club is to make it successful (or sell the ground which obviously is not relevant here). If we can get some real professionals on board to make this a reality, then good. Another concern I have with the alternative (Shepherd staying here) is that his son will most likely take over the reigns at some point. Nepotism rarely suceeds in anything but abject failure, and Kenneth is already showing signs of being as incompetent as his Dad.

 

Better the devil you know? After Shepherd's catalogue of errors, I would be happy to take a leap of faith and accept change at the top, because otherwise I see litt le future anyway.

 

Yup, our fucking up in the transfer market has also coincided with Freddie handing over transfer negotiations to Kenneth. Coincidence I'm sure.

[ewerk 30167]

Was there ever any more word whether this Sheik was behind the takeover? As has already been said I can't see any attraction for a hedge fund interested in making large profits, they may rename the stadium and hike up ticket prices but I don't think a significant sustainable increase in profits is possible without huge investment.

 

Surely if Freddy continues to play hardball Belgravia could agree a deal with the Halls and a number of other investors to take their holding above 50% and then free freeze the Shepherds out from the running of the club. Though I'd say the Halls will also be looking to hold out for as high a price as well.

Edited October 3, 2006 by ewerk

[snakehips 0]

i hope to god hall persuades shepherd to sell

 

now, if you want a company like that taking over the club, you really are showing your abject stupidity

 

Sorry, like, but this is called for :

 

Why do you feel the need to continuously insult Dan? Is it a character flaw or something you enjoy doing? Either way it's pathetic.

 

Whether you find his posts naive, foolish, mis-placed or wrong, you have no need to continuously insult him.

 

It seems that every time Dan posts something, you are not far behind with some inane insult.

 

I've been on the go for 12 hours now. I'm tired and uber pissed off and reading, once again, your insult of Dan has just tipped me over the edge.

 

Could you please just use reasoned argument with him instead of the insults??

Edited October 3, 2006 by snakehips

[adios 717]

Sorry, like, but this is called for :

 

Why do you feel the need to continuously insult Dan? Is it a character flaw or something you enjoy doing? Either way it's pathetic.

 

Whether you find his posts naive, foolish, mis-placed or wrong, you have no need to continuously insult him.

 

It seems that every time Dan posts something, you are not far behind with some inane insult.

 

I've been on the go for 12 hours now. I'm tired and uber pissed off and reading, once again, your insult of Dan has just tipped me over the edge.

 

Could you please just use reasoned argument with him instead of the insults??

 

Snakey, get some sleep, you're losing your mind!