Polygon ends Newcastle bid talks

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The Polygon-backed St James' Park Group consortium has said it has no current intentions of bidding for Premiership football club Newcastle United.

In a statement the hedge-fund backed group also said it had ended talks with the north-east England outfit.

It had been one of many names said to be mulling a bid move for United, which would not comment on the announcement.

St James' Park Group said it reserved the right to make an offer or possible offer if circumstances changed.

Those circumstances would include any offer for Newcastle United from another party.

The news saw shares in the club fall in mid-afternoon trade in London by 8% - or 6.5p - to 74 pence, the price at which it settled by close of trade.

A spokesman for Newcastle United plc said they had no comment to make on the St James' Park Group statement.

Neither would they comment on whether there had been any further contact with the Belgravia Group, another possible suitor.

Major shareholders

Jersey-based Belgravia has been repeatedly linked with bids for the club.

Belgravia is a private company with interests including construction, hospitality, aviation and sports marketing.

Before Christmas Newcastle United said talks with Belgravia were ongoing and also revealed that American financiers Polygon had requested access to the company's books.

Majority shareholder at Newcastle United is Sir John Hall who, with his son, owns more than 40% of the club.

The other major shareholder is Newcastle chairman Freddy Shepherd, who owns a 28% stake in the football club.

Rising costs

In October 2006 Newcastle United announced a £12m financial loss for the year after heavy investment in players and a fall in revenues due to its failure to qualify for Europe.

The result was a reversal in financial fortune for the Premiership club which made a £620,000 profit the year before.

Revenues fell by nearly £4m to £83m as an absence of European football reduced match day ticket sales.

Expensive new signings such as England striker Michael Owen, bought from Real Madrid, also pushed up costs.

http://news.bbc.co.uk/2/hi/business/6229885.stm