MYSTERY surrounded the future of Newcastle United last night after the club denied reports it was about to be taken over by foreign investors.

The club moved swiftly to deny reports that a £227m takeover bid led by US investment group Polygon and the United Bank of Switzerland had been accepted.

But the denial does not appear to have cooled City speculation that a takeover is imminent, with the club's share price continuing to soar during the day.

The two partners are known to have been working on a possible takeover of the Magpies since the summer, and long-running speculation has also linked the Jersey-based Belgravia group with a rival bid for the club.

The latest bid, said to be an offer of 93p a share, was reported to have reached the "due diligence" stage - a precursor to a formal offer expected to be completed in the new year.

However, the club released a statement to the Stock Exchange yesterday, saying: "The board wishes to clarify that it has not accepted any proposals for the company from any party, nor is any due diligence being conducted on the company.

"Therefore, there can be no certainty that an offer will be made, nor as to the terms on which any offer would be made.

"A further statement will be made as appropriate."

Shares in the club closed last night at 79p -up 3.5p on the day -and at one point were changing hands at 84p.

Former chairman Sir John Hall, who controls a 28.8 per cent stake, with his son Douglas holding a further 13 per cent, has been in talks with groups in recent months with a view to selling.

Current chairman Freddy Shepherd holds a 29 per cent stake in the club.

The Polygon bid is reported to include a £20m transfer fund for manager Glenn Roeder, who was busy preparing his players for today's home clash with Watford.

However, the manager declined to be drawn on the rumoured bid, saying: "I only concern myself with the football side. These are things I have no control over and do not want to have any control over."

International investors are increasingly targeting Premier League clubs, with Manchester United and West Ham both recently the subject of foreign takeovers, with ongoing speculation over the future of Liver- pool.

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