Shepherd may face takeover battle

Newcastle chairman Freddy Shepherd is confident of beating off any bids for control of the club.

News that former chairman John Hall, now club president, has received an approach to sell his holding has sparked fresh suggestions that ownership of the Magpies’ could change hands.

However, insiders at St James’ Park have insisted privately that Shepherd could repel any such move.

A statement was released to the Stock Exchange by Newcastle PLC this morning following speculation over the weekend that American hedge fund Polygon has been working with investment bank UBS for several months on a buy-out proposal.

The statement said: “The board of Newcastle United PLC notes recent press speculation and confirms that it has today been informed by Sir John Hall representing Wynyard (Guernsey) Limited, which owns approximately 28.8% of Newcastle United PLC, that it has received expressions of interest to acquire its shareholding, which may or may not lead to the disposal of its stake.

“A further announcement will be made if appropriate.”

Hall’s son Douglas, currently deputy chairman at St James’, is linked to a further 13% stake, while Shepherd Offshore recently upped its holding to 27.29%.

It is not the first time the man who took control of the club in 1991 after an acrimonious battle has been offered the opportunity to sell up.

Reports last summer suggested a Malaysian group and another British-based investor were ready to fight it out for his stake.

Metrocentre developer Hall succeeded Gordon McKeag at the helm of the struggling club and having drafted in former player Kevin Keegan as manager, sparked a drive which propelled Newcastle into the big time.

By the time he stood down as chairman to be succeeded by Shepherd in December 1997, the Magpies had twice finished runners-up in the Premiership and had embarked upon their first Champions League campaign.

It was Hall who, 10 years ago, provided Keegan with the then world record £15m (€22m) to buy Alan Shearer, and the big spending has continued under Shepherd.

Newcastle PLC reported an operating profit of £2.7m (€3.9m) for the six months to January 31, 2006, down £5.8m (€8.5m) on the previous period.

However, they spent £28m (€41m) on Michael Owen, Albert Luque and Nolberto Solano during the same six months.