New bidder enters race to buy United

Oct 7 2009 by Stuart Rayner, The Journal

BARRY Moat has a new rival as he tries to complete a takeover of Newcastle United, it has emerged.

The local businessman has lodged a formal written bid for the Magpies at a figure below owner Mike Ashley’s £100m asking price.

But The Journal understands a South African bond dealer has now entered the protracted race to be the Championship club’s new owner.

Legal firm Mishcon de Reya is thought to have been negotiating direct with the club on behalf of the un-named bidder, bypassing Seymour Pierce, who Ashley appointed as brokers for the deal. They are understood to have been through the process of due diligence, but are yet to lodge a formal written offer.

United’s bankers, Barclays, are aware of the rival interest and could have a pivotal part to play in proceedings. As a matter of policy the bank offers a far smaller overdraft facility to Football League clubs than their Premier League counterparts, making a takeover potentially far less attractive.

Ashley is believed to have negotiated more generous leeway from the bank, but it is unclear if Moat and his American backers have yet been able to do this.