Hard-up Leeds admit takeover talks
LONDON, England -- Struggling Leeds gave their fans a glimmer of hope on Wednesday when the Premier League club said they were in talks about a possible takeover.
Leeds, second-bottom of the league and 80 million pounds ($139.2m) in debt, said talks are at an early stage, but the news led to the club's shares leaping.
Last week Leeds struck an agreement with key creditors to give them until January 19 to find parties prepared to invest in or buy the company.
"The Board of Leeds United PLC confirms that it is currently in discussions with a number of interested parties which are at a very early stage and may or may not lead to an offer being made for the company," Leeds said in a statement.
Bahrain-based Sheikh Abdul Mubarak Al-Khalifa, a long-time Leeds fan from his school days in England, and two Saudi businessmen were reported to be bidding to takeover the club.
Former deputy chairman Allan Leighton is also believed to be putting together a consortium and resigned from the board last week to avoid a potential conflict of interests.
Al-Khalifa's associates were named as Sheikh Mansour Salah Al-Zamil, who owns oil and gas containers and storage businesses, plus steel and construction companies and huge land interests, and Sheikh Fahd bin Muhammed Al-Sudairi, a businessman who is connected to the Saudi Royal Family.
Leeds main creditors are three U.S. companies who are owed 60 million pounds and player-leasing agents who are owed a further 21 million pounds.
Chief executive Trevor Birch is confident he will save Leeds from administration, and believes not only will no players be sold in the January transfer window, but new players will be signed.
Leeds were Champions League semifinalists in 2001 and top of the Premier League three years ago.
Since then, in a desperate bid to cut their huge wage bill, the club have sold a series of high-profile players and, despite several changes of management, have turned from title contenders to relegation candidates.
Four points from their last two games, including a draw against leaders Chelsea, have seen Leeds climb off the bottom of the league.
