Newcastle owner in takeover talks

by Essential Sports

Updated: July 4, 2008, 9:42 AM EST 2 comments

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The reports say that representatives of owner Mike Ashley have spoken to counterparts of private equity fund InterMedia Partners, who have their base in New York.

American sources have confirmed that InterMedia Partners have held initial talks, while Newcastle have remained silent on the matter. Sources also say that Ashley has offered to sell the club for £420 million, about £286 million more than he paid for it when he bought it a year ago.

Ashley made his move for the club last summer, after former chairman Freddy Shepherd had already fought off a number of other takeovers bids, pocketing the club for a cool £134.4 million.

Since then Ashley has pumped roughly £100 million into the club, mostly in order to pay off his inherited debt and strengthen the squad.

Lately Ashley has emphasised the need for economy at the club in bid to reduce summer spending and lessen an out-of-control wage bill.