BILLIONAIRE businessman Mike Ashley has bought a 41.6 per cent holding in Newcastle United.

The move is believed to be the springboard for a full takeover bid.

St James Holdings Limited, a company set up specifically to buy shares in the club, has acquired 55,342,223 shares at 100p each from Wynyard (Guernsey) Limited, Cameron Hall Developments Limited and Cameron Hall Developments Limited Executive Pension Scheme, the holdings of Sir John Hall and his family.

Stock Exchange rules mean that the company now has to make a cash offer for the remaining shares, around 29.8 per cent of which belong to chairman Freddy Shepherd.

Mr Shepherd has long denied the club is up for sale.

But the swoop for the shares held by Sir John Hall and his family would appear to have changed the situation drastically.

Earlier this month, Mr Shepherd said: "It's a plc matter so I can't say too much. But none of the talks have come to anything for one simple reason - I'm not selling.

"It's an impossible club to buy. If the Halls don't sell and I don't sell, there's no way anybody can buy this club. "

In March, Newcastle reported a half-year operating loss of £6.9m - six months after making total annual losses of £12m.

While the plc saw an £800,000 increase in its profits for the six months to December 31, from £2.7m to £3.5m, its transfer dealings were said to be "significant" in its overall financial performance, as they were in its last full-year results.

Analysts said that big-money transfers including the sale of £8m signing Jean Alain Boumsong to Juventus for an initial £3.3m, were crucial in Newcastle posting its £6.9m loss, which had increased by £3.8m from January 2006.