Manchester City in takeover talks

Manchester City's board has announced to the London Stock Exchange that it is in "preliminary discussions" with potential investors that may lead to an offer for the club.

It is understood four groups of investors are competing against each other, including one from the USA.

The Premiership club revealed before Christmas that it was seeking fresh investment, but the statement suggests some progress has been made since then.

It 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."

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 £21m (€31.2m) in outstanding loans to the club.

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

Wardle has made it perfectly clear that the club must remain in good hands.

If he and Makin did step down, then it is understood the newcomers would invest heavily in City but could end up financing a full £70m (€104.1m) takeover.