Ashley wants more than initial $540m bid for Newcastle

LONDON • Amanda Staveley's Dubai-based financial advisory firm PCP Capital Partners has formally offered Mike Ashley a sum in the region of £300 million (S$540 million) for Premier League club Newcastle United after conducting preliminary due diligence on the club's finances.

However, Newcastle's owner, who wanted a package nearer £400 million, is pondering his next move and on Monday night was still to accept the bid in principle.

Should the Sports Direct owner do so, a period of exclusivity would be entered into during which specialist lawyers would undertake a period of formal due diligence.

This process usually takes around a month, dictating that a final deal could theoretically still be negotiated and completed by Christmas, although a new-year completion seems more likely.

Staveley, believed to have lodged her bid late last week, hopes the takeover will be completed by the turn of the year in order to provide manager Rafael Benitez with the funds needed to reinforce his squad in the January transfer window.

The Spaniard was disillusioned by Ashley's failure to strengthen the team following last spring's promotion and there are real fears he could be tempted to resign should no funds prove forthcoming in January.

It is no exaggeration to say the future of Benitez on Tyneside could hinge on the success or otherwise of Staveley's bid.

If Ashley, who would be disinclined to spend during the coming window, lost Benitez, the club would become infinitely less attractive to potential buyers and a third relegation in his decade-long tenure could become a real possibility.

Sportswear magnate Ashley announced last month he wanted to sell the club after 10 years in charge, having paid £134.4 million to buy Newcastle in 2007.

The 53-year-old Londoner has proved a divisive figure during his tenure, which has seen Newcastle twice relegated from the Premier League and then immediately promoted back.

Staveley, 44, helped broker Sheikh Mansour's purchase of Manchester City in 2008.

She was spotted watching Newcastle's 1-1 draw with Liverpool at St James' Park last month. Newcastle were promoted from the Championship under the guidance of Benitez last season.

The north-east club regularly attract crowds of more than 50,000, but their supporters have not had a trophy to celebrate since the 1969 Inter-Cities Fairs Cup, the precursor to the Uefa Cup, now known as the Europa League.

THE GUARDIAN, AGENCE FRANCE-PRESSE

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A version of this article appeared in the print edition of The Straits Times on November 22, 2017, with the headline Ashley wants more than initial $540m bid for Newcastle. Subscribe