Are Newcastle a TakeOver Target?


The price of Newcastle’s shares on the stock exchange have been rising since March.

Yesterday saw another active day of trading in the shares and the club now has a capital market value of £110M – up about 30% since March.

Fresh rumors are starting to circulate in the City about the possible interest of two new parties, one Far Eastern, the other American – but little else is known at this point.

sir-john.jpg

Sir John Hall

The price of Newcastle United’s shares yesterday closed at 89.00p – up 2.98p or 3.72% on the day.

You may remember for about six months last season there was interest from two parties. One was the Belgravia Group and another was an American Hedge Fund – Paragon.

But with Freddy Shepherd and Sir John Hall holding the bulk of the Newcastle shares – it will take both of them to sell before any takeover is possible at the club.

However the value of the club has gone up significantly and the price of their shares has also risen substantially in the last three months.



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11 comments so far

  • Ahmed Bilal

    May 22, 2007 at 7:34 AM

    Comment #1

    Buying up Newcastle now would be a good time, am actually surprised that there isn’t more speculation around this 🙂

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  • lee

    May 22, 2007 at 8:33 AM

    Comment #2

    We need to be careful of buying interests… they must be genuine investors, i.e. interested in building team Newcastle not profiting from real estate Newcastle. Seems like more recent interests on the latter than the former.. so makes a lot of difference to current owners if they sell now. Looks more likely Freddy and Sir John will only sell once the new stadium can be included in the club’s valuation… perhaps substantially more than the current market price.

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  • És

    May 22, 2007 at 9:03 AM

    Comment #3

    I think they will sell the club if the offer is more than £250M.

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  • lee

    May 22, 2007 at 9:21 AM

    Comment #4

    Es – it depends on how much is NUFC’s share of the expected expansion profits. That + current market price = new selling price.

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  • Ed Harrison

    May 22, 2007 at 9:23 AM

    Comment #5

    Ahmed – one of the problems with buying Newcastle i should have mentioned is we have a current debt of about £60M – so the cost would be £110 + £60 + goodwill (premium on share price) + a stated initial transfer infusion – say £25M — if goodwill is £20 M that would be about £215M. Quite high.

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  • Ed Harrison

    May 22, 2007 at 9:24 AM

    Comment #6

    Lee – interesting point !

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  • Ed Harrison

    May 22, 2007 at 9:28 AM

    Comment #7

    Seems if we are to be one of the “big” teams someone with money really needs to be interested in us – but also have passion for the team – and the Geordie Nation. Where is that Billionaire Geordie we need ? I keep telling my wife(to her great amusement i’m sure) if i had been more successful at IBM would have loved to have bought Newcastle and be Chairman – but if it took £400M I’m about £401 short 😀 😀

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  • lee

    May 22, 2007 at 9:37 AM

    Comment #8

    If the price becomes too high relative to its medium term (post-sale) profit potential, no investors would be interested then… what’s the point of buying a club if you cannot make lots of money.

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  • Phil

    May 22, 2007 at 10:34 AM

    Comment #9

    Shepard has said he is not selling and blocked the last to as he has over 30% of the shares and wont sell.

    Due to needing 75% ownership to force a take over this is not possible and wont happen unless he is offered stupid money off a billionare.

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  • […] our piece Monday “Are Newcastle a Take-Over Target” we had speculated that Newcastle were being lined up because the share price had increased by 30% […]

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  • […] since the performance of the club during that time was not good. We ran an article Monday Are Newcastle a Takeover Target suggesting it could be caused by a takeover in the […]

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