Shepherd set to resist as investors eye Magpies swoop

NEWCASTLE chairman Freddy Shepherd is expected to resist any takeover bid by Jersey-based Belgravia Group.

A statement released to the Stock Exchange yesterday confirmed that Belgravia are investigating the possibility of launching a bid for the club.

It is understood they are in talks with former chairman John Hall over his 28.8% stake, while his son Douglas, Shepherd’s deputy, controls a further 12%.

However, the feeling on Tyneside is that Shepherd, who has increased his stake to almost 28% in recent years, will scupper any plans for a takeover should the potential purchasers secure the Hall family’s holding.

Stock Exchange rules mean the acquisition of a 30% share of the club, which has a current market value of around £81 million (€118 million), would trigger a formal takeover bid, although it would then be up to the remaining shareholders to decide whether or not to accept.

Shepherd seems unlikely to sell up.

John Hall revealed in June he had received “expressions of interest” in his shares, and speculation named US hedge fund Polygon as one of the interested parties.

Newcastle plc were adding little to the debate yesterday, saying only: “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.”

Belgravia’s statement said: “The Belgravia Group (‘Belgravia’) 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. A further statement will be made if appropriate.”

A spokesman for the group insisted any offer is a long way off.

The news caused a buzz on Tyneside amid suggestions that a successful bid would lead to millions being ploughed into the team.

Belgravia Group is a private company which has diverse interests including construction, hospitality, aviation and sports marketing.

The club’s share price rose nine pence to 70p within two hours of the announcement.

Commentators predicted at offer of between 10% and 15% above the market value of the shares, which would see the Hall family rake in between £35m (€51m) and £40m (€58m).

John Hall bankrolled the club’s return to prominence after completing his own takeover in the early 1990s.