Leeds in takeover talks with 'several parties'

Leeds United yesterday confirmed they are in talks with "a number of interested parties" about a possible takeover but stressed that no bids have been made. It is understood that none of the interested parties has yet even reached the "confidentiality" stage of negotiations, where they are given access to Leeds' books.

Any bidder would go through this process to satisfy themselves of the club's financial state before tabling a formal offer. A bidder would also have to have had their own assets verified prior to seeing the books. Leeds estimate that £50m to £60m will be required to buy the club and make it stable.

Leeds confirmed their discussions with potential buyers following persistent reports about Bahrain's Sheikh Abdulrahman bin Mubarak Al-Khalifa. Although the sheikh is a long-time fan of Leeds and says he wants to be part of a deal to save the club, he has made no bid yet. According to one City source, he has still not conclusively proved that he or his Middle Eastern backers have the necessary funding for a bid. "Until the letter arrives from the bank manager to prove it, there's no way anything can move forward," the source said.

Leeds are hopeful of finding at least two or three bidders. Aside from the sheikh, the name of Allan Leighton has been most prominent as a possibility. His resignation as the deputy chairman of Leeds plc last week was taken as a signal that he is putting together a consortium. No details have been confirmed.

Peter Wilkinson, who has amassed a £400m fortune in computing, has been touted as another contender, as has Jeremy Fenn, a former Leeds executive and business colleague of Wilkinson. Kevin Linfoot, a local property magnate, could also be in the running, while rumours persist that a Far East consortium is showing interest. Fans' groups are also looking to get involved, probably in conjunction with one of the above.

In a statement to the Stock Exchange, the board said its discussions, with unspecified parties, "are at a very early stage and may or may not lead to an offer being made for the company".

The good news for supporters is that more than one party is involved in talks. More troubling is that Leeds need involvement to become action within weeks. The club has until 19 January to find a buyer but substantial progress will be needed by the end of December to maintain the hope of avoiding administration.

The Leeds chief executive, Trevor Birch, warned that it would be "a brave man" who puts the club into administration.

"There is great fundamental uncertainty whether the club could go into administration and reappear because Premier League rules are different to Football League rules," he said. "The Premier League is a limited company, there are 20 shareholders and the fate of the club is likely to be decided by the 20 representatives at a shareholders' meeting.

"You couldn't, hand on heart, take the club into an administration process when you are not sure about what the outcome would be.

"For example, take a club trying to make ends meet and they've had mediocrity for the last five years. They may have looked at what Leeds have done with jealousy, but then see Leeds wiping out their debts. They could say, 'Tough, you've broken the rules and out you go'. That's not inconceivable, so it's a brave man who puts the club into administration because it could happen."

Birch also feels the players can play their part by continuing with the form they have shown in the last two games. "Performances on the pitch are critical," he said. "It is vital to show potential investors that they will not be taking over a team at the bottom of the League. I've had a couple of chats with the players recently because I don't want them kept in the dark about anything. In fairness, they are responding well."