NEWCASTLE TO BE TAKEN OFF STOCK MARKET!

By Don Murray Date: 1/10/2001

It will be announced later today that Freddie Shepherd (and pals) will take Newcastle United off the stock exchange. How this effects shares no-one seems to know at the moment. But WATCH THIS SPACE!

There are strong rumours that Freddie Shepherd and certain members of the NUFC PLC don't see eye to eye. Some share holders are frightened Shepherd's handling of the club is ... how shall I put it ... not in the interests of the club. Hence the departure of influencial figures.

But there is a rumour Shepherd and friends don't like the way transfer deals are only conducted under the current ruling that all major share holders must give the thumbs up.

Major changes are planned.

-- Anonymous, October 01, 2001

Answers

OOps meant to qualify that is from the Talk of the Tyne site

-- Anonymous, October 01, 2001

Anyone want to buy my shares?

-- Anonymous, October 01, 2001

I'll give you 20p per share Tony if you want rid.

ps: no Press Release today regarding this after all (5:30pm)

-- Anonymous, October 01, 2001

It's with the press release re Bellamy's purchase. ;-)

-- Anonymous, October 01, 2001

This was all over the FT today - no confirmation of facts, just rumour. Public to private buyouts of minority shareholders (in this case, the likes of you and me) are pretty commonplace and may well take off in the current market climate. After all, in the days when stock markets went only one way, up, there was always somebody willing to throw money at investment opportunities. Now the markets are down, the cheap way of gaining total control again is to buy all those shares back.

The pricing could be interesting, though. To buy the shares back at the current market price would provide their critics with even more ammunition. Especially in the case of people who have lost a lot of money (admittedly on paper) not looking for a quick buck on sale of the shares, but feeling pride in owning a small part of a very important piece of the local community. And even more so when you consider the performance of these bloody shares since the flotation.

They would likely have to pay above the current price, but how much above is based on what is determined to be a fair price by both buyer (Shepherd and Hall) and seller (us), which is all well and good for Shepherd and Hall, who could afford to pay the experts. Who would be providing independent advice to you and me, the man in the street? I would imagine the members of the board of directors other than Shepherd and Hall would have to signal whether they recommended or didn't recommend the terms of any deal put forward and considered it fair and reasonable. The potential for another public relations cock-up should any move to buy out minorities take place is enormous.

-- Anonymous, October 01, 2001

I don't understand these things but is the possibility of a buy back likely to move the share price up as folk expect to receive a premium on the market price if it happens?

-- Anonymous, October 01, 2001

I sense a Save Our Shares campaign building ;-)

-- Anonymous, October 01, 2001

I didn't buy mine as an investment. I wanted a bit of NUFC and want to keep it - what happens if I don't sell ?

-- Anonymous, October 01, 2001

I don't think you have the option of not selling if a sufficient majority agrees. I think you just get a cheque in the post!

-- Anonymous, October 01, 2001

While i smympathise with those of you who own shares, can you honestly say what advantage it has, other than making you feel you 'own' part of the club. Also, there has been no advantage whatsoever in the club being a PLC as far as I can see.

No doubt the press will stir this up into a greedy Shepherd/Hall story when I suspect that in the long term it's not such a bad idea.

-- Anonymous, October 02, 2001

I've just noticed that according to the reports Doug Hall isn't part of the deal. Shephard wants to buy him out.

e.g. today's SUN:

NEWCASTLE chairman Freddy Shepherd is bidding to buy up the Premiership club.

Tycoon Shepherd has been in talks with Douglas Hall, the 47 per cent owner of the club and son of prime mover Sir John Hall, to get his blessing for a £40million deal.

It could see the end of the Halls’ nine-year ownership of Toon and result in United being removed from the Stock Exchange.

Shares have slumped to 27p, one-fifth of their flotation price five years ago.

Fans who paid £500 for 370 shares have seen the value plummet to £106.

-- Anonymous, October 02, 2001

With Newcastle announcing a loss of over 8 million today, you can see that a lot of investers would welcome a Shepherd buy out.

What concerns me is where is Shepherd getting the money from?

If I were him, i'd go to the banks and say. I'd like to borrow £4o million, and Guarantee that I will repay that amount within a year. He then gets the money, buys the club, the instructs Robson to sell Dyer and other players in order that he can recoup the £40 million.

at the end of the year he has total control of the club and it's cost him nowt.

-- Anonymous, October 02, 2001

conflicting finantial mumbo jumbo comming out today.

Newcastle United have announced a significant reduction in losses over the financial year ending on July 31, 2001 - and it seems that, by cutting operating loss by 73% to £5.1m, compared to £19.1m in 2000, the St James Park outfit is now back on a firm financial footing. The club have also increased turnover by 22% to nearly £55m, as gate receipts improved because of the greater capacity at St James' Park stadium. . Retained loss for the year was also reduced by 31% to £13.3m from £19.4m last year. The deficit on player trading was also cut by 38% to £12.3m Television revenue also increased thereby offsetting the loss of revenue the club suffered from missing out on Europe. Chairman John Fender stated: "The group has a robust financial base with increasing revenues and a cost base under tight control. "With the established playing squad, the enlarged stadium and the continued support of our magnificent fans we look to the future with confidence."

-- Anonymous, October 02, 2001

Rik, I take your point, but by the same token anyone could do that, even us (well, maybe not, but you know what I mean). I don't like Fred the person any more than anyone else on here, but I've always thought his motives were more than just financial. But then again, I don't know the bloke, so what do I know. Whatever happens, I lost a pot load buying NUFC shares, and I got them 2 years after the float, so lord knows what the early punters lost.

-- Anonymous, October 02, 2001