Magpies dismiss club valuation

Reports of £420million takeover talks are denied

Last updated: 4th July 2008

Mike Ashley Newcastle United Chairman

Ashley: Would make a considerable profit

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Newcastle have rubbished reports that owner Mike Ashley has put a £420million price-tag on the club.

With rumours suggesting that the Magpies are currently in talks with American private equity firm InterMedia Partners over a potential takeover, it was claimed that the interested party had been quoted that valuation.

The figure represents some £286milliion more than billionaire businessman Ashley paid for the club a year ago.

However, a spokesman for Newcastle has claimed that reports of takeover talks and inflated price-tags are simply not true.

"It is absolute nonsense," they said.

Speculation has been circulating for some time that the Ashley would be prepared to listen to offers, although voices inside St James' Park maintain that the current board are building for a sustained future.

Outlay

Ashley has pumped around £100million into the club since his arrival, addressing the debt situation and strengthening the squad.

With little to show for that considerable outlay there had been murmurs that he was not prepared to continue bankrolling an organisation which was producing no reward.

With that in mind, should he be able to secure a £420million deal he would walk away with a mammoth profit and leave the club financially secure, but Newcastle insist the reports are unfounded.