City in talks with potential investors

Manchester City have announced to the Stock Exchange they are in “preliminary discussions” with potential investors that may lead to an offer for the club.

City revealed before Christmas they were seeking fresh investment in the club but today’s acknowledgement that they are talking to “third parties” suggests some progress has being made since then.

A statement to the Stock Exchange read: “The board of Manchester City notes the recent press speculation regarding the possibility of an offer being made for the company.

“Further to the company’s announcement on December 7 2006, the board of Manchester City confirms that it remains in preliminary discussions with third parties that may or may not lead to an offer being made for the company.

“A further announcement will be made in due course as appropriate.”

If the talks continue to progress, the next stage would be confirmation of ’advanced negotiations’, then naming a preferred bidder, before finally agreeing to due diligence.

The key to any deal would be the agreement of chairman John Wardle and his business partner David Makin, who between them own 29.75% of the shares but also have £21million in outstanding loans to the club.

The next largest shareholders are Mark Boler (18.75%), BSkyB (9.9%) and Francis Lee (7%+).