Publicity May Scare Off Birmingham Bidder

The Far East-based businessman interested in assuming control at Birmingham City is believed to be deeply frustrated that news of a possible takeover has become public knowledge. Following reports on Sunday, Birmingham issued a statement to the Stock Exchange yesterday confirming they have been approached about a takeover offer, prompting a source close to the bidder to claim the St Andrew's hierarchy "may have shot them themselves in the foot".

With the share price climbing and speculation mounting that Birmingham were the subject of takeover interest, the newly promoted Premiership club had little option but to release a statement. However, it is understood that the prospective buyer believes that course of action would not have been necessary had Birmingham kept details of the takeover interest secret at the outset. Assurances had been sought to that effect when the parties initially held talks about a probable bid.

It is highly unlikely discussions will be broken off but the process, with due diligence yet to get under way, is not nearly as advanced as has been suggested. Furthermore there is no indication the individual interested will consider entering into an auction. Indeed, any attempt to create a bidding war - something Doug Ellis was accused of before he sold his stake in Aston Villa last summer - would almost certainly bring an end to the talks.

Birmingham have carried out their own checks and are satisfied the Far East businessman has sufficient funds in place to proceed with an offer for the club. The statement released yesterday, however, made clear the takeover is far from a formality. "Discussions are at a very preliminary stage and the directors note that there is no certainty that a transaction will result from the approach," said the statement. It is also likely the club will be valued at closer to £50m and not £70m as initial reports suggested.

Gathering interest in the club's future was evident in the stock market yesterday as Birmingham's share price climbed by more than 25% to 52p at one point before closing at 45p, up 12.5%.

The club have been frustrated in their attempt to lure the Senegal international Diomansy Kamara from West Bromwich. Kamara appears certain to leave Albion this summer after they missed out on promotion but Birmingham had a £3m bid for the striker rejected yesterday.