Aston Villa rejects takeover bid

ASTON Villa Plc, the soccer club ranked eighth in the English Premiership, rejected a takeover bid from sports financier Ray Ranson.

The offer "significantly undervalues Aston Villa", the Birmingham-based company said in a statement.

The stock gained 9.5 pence, or 4.1%, to a three-year high 242 pence as of 10:30am in London, giving the company a market value of stg£27.6 million (€39.7m).

Ranson, 43, a former executive of reinsurance company Benfield Group Ltd, made his money in sports insurance and helping clubs to finance player purchases. He helped Leeds United find the money to acquire Rio Ferdinand, Robbie Keane and Mark Viduka they cost a combined £36 million.

Ranson, a former captain of England's under-21 team, was a full-back for Newcastle United, Birmingham City and Manchester City. He played until 1991.

British soccer clubs have received a number of takeover bids in the past year.

Russia's second-richest man Roman Abramovich bought Chelsea in July for stg£59.3 million, while Malcolm Glazer, owner of the Tampa Bay Buccaneers, last month said he may make an offer for Manchester United.

Aston Villa said in July it was approached by potential buyers.

The club later said it didn't have evidence the unidentified parties had sufficient funds.

In January Aston Villa said its first-half loss more than doubled to 16.5 million pounds after it incurred stg£4.1 million costs when it released two players.

Villa hasn't posted a full-year profit since 1999 as sales have lagged rising operating costs at the club that finished 16th in the 20-team Premiership last year.

Clubs finishing low in the tables face the prospect of lower television revenue and ticket sales while the pressure to be competitive increases costs.

Aston Villa is looking for a new chief executive to take over from Doug Ellis, 80, and help develop the business side of the club.

Ellis, who owns more than a third of the club according to Bloomberg data, will remain as chairman.