Magpies close to a sale (From The Northern Echo)

Magpies close to a sale

8:47am Tuesday 7th July 2009

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DEREK Llambias claims Mike Ashley has received at least three offers that match his £100m asking price for Newcastle United.

And with the current Magpies squad continuing their pre-season preparations in Ireland this morning ahead of Saturday’s opening preseason friendly at Shamrock Rovers, investment broker Keith Harris is ready to make a formal recommendation that could finally pave the way for a sale.

Harris instructed the four consortia involved in the due diligence process to table offers at the end of last week, and two groups, one based in Malaysia and the other from the United States, are known to have made firm bids.

Representatives of both groups have enjoyed a tour of Newcastle’s Benton training facilities in recent days.

Last week’s bids were believed to be in the region of £80m, with the existence of an extensive overdraft facility having further complicated talks over the weekend.

Llambias, however, claims to have received offers of £100m, although it is unclear whether those bids are straight cash offers or more complicated payments that could reflect a willingness to take on a significant amount of pre-existing debt.

Either way, Harris and his fellow brokers at Seymour Pierce are currently scrutinising the fine print of last week’s offers, and are expected to identify a recommended party shortly.

It will then be up to Ashley to decide whether or not he is willing to accept Harris’ recommendation and begin drawing up formal takeover documents.

“There have been more than two bids at £100m,” said Llambias. “At the moment, we are in the hands of lawyers and it is all ongoing. We are giving interested parties all the help that they need.”

While the ongoing takeover talks are commanding the bulk of his attention, Llambias is also attempting to reduce Newcastle’s £62m wage bill by selling some of the club’s highest earners.

The departure of Michael Owen, Mark Viduka, David Edgar, Claudio Cacapa and Peter Lovenkrands has shaved around £10m off the club’s annual wage outlay, but further cuts are needed if the Magpies are to survive in the Championship.

Newcastle officials have spoken to Sevilla about the possible sale of Fabricio Coloccini, and the Spanish club have now also declared an interest in striker Obafemi Martins.

Martins, who has been linked with Arsenal, Tottenham and Fulham in recent weeks, is likely to command a fee close to the £10m Newcastle shelled out to sign him in August 2006.

But with the sale of Martins and Coloccini representing a saving of around £120,000-aweek in wages, Sevilla officials are hoping that United can be persuaded to accept a cut-price double deal.

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