Profitable in talks over Newcastle

Newcastle United's infamous capacity to bewilder revealed itself once again yesterday when hours after the club's managing director Derek Llambias publicly rubbished takeover claims from a Singapore-based company called the Profitable Group, sources close to the investment bank charged with selling Newcastle, Seymour Pierce, confirmed that Profitable had made contact and had to be considered contenders to buy based on that approach.

Llambias said on Tuesday that Profitable's reported interest in acquiring Newcastle was "total rubbish", but Seymour Pierce's view yesterday morning was different and in the afternoon Profitable issued a statement on their website.

"The Profitable Group can confirm that it has expressed an initial interest in acquiring Newcastle United," began the statement. "A preliminary discussion with the representatives appointed to handle the sale of the club has been held but contrary to some reports no direct talks have been held with either the owner, Mike Ashley, or the chairman [sic], Derek Llambias.

"The Group consider the leaking of the Group's interest in this matter unfortunate, and as supporters of Newcastle United seek only to serve in the best interests of the club, the fans and the local community. The Group will not be making any further comment at the present time."

Profitable have high-profile representatives in Steve McMahon, who is now based in Singapore part of the year, and in Kenny Dalglish, who does some consultancy work for the company which is promoting Liverpool's tour of Asia this summer. Profitable have stated that they would appoint Alan Shearer, who was managed by Dalglish at Blackburn and Newcastle.

There was some scepticism in the City of London yesterday as to Profitable's true economic clout, a sentiment that was voiced last year when they were also linked with a possible buy-out.

But whereas last year the Newcastle owner Mike Ashley was seeking a minimum of £180m – it was not known if the £110m interest-free loan Ashley has given Newcastle was on top of that – now the asking price at St James' Park is £100m.

That drop could have made Profitable more realistic buyers and until their interest is exhausted Seymour Pierce will treat them as credible. According to Llambias there may be four others who have made notable contact and among those consistently mentioned is a UK-based consortium and one in America. The South African group of businessmen who showed interest last September may also be reviewing the situation.

There is still confidence that Seymour Pierce's Keith Harris was correct in saying that the end of June could see a deal done.

With another day passing without Shearer being appointed by Ashley – a fortnight ago Llambias said Shearer was "110 per cent" the manager Newcastle wanted – the club continues to operate with Chris Hughton as its most senior football figure.