Blues takeover talks continue

Birmingham have confirmed that "discussions are continuing" over a possible takeover after directors agreed to sell 29.9% of the club's shares to Hong Kong businessman Carson Yeung.

Directors David and Ralph Gold, David Sullivan, Karren Brady and Roger Bannister have given Yeung's Grandtop International Holdings Limited the right to buy the shares at the ordinary share capital of 61.331 pence. But, although he must have 30% of shares before being compelled to make an offer on the entire company, a statement to the Stock Exchange revealed a further investment was still possible.

The statement read: "Shareholders should be aware there is currently no indication at this stage a formal offer will be made for the company as a whole but discussions are continuing with GIHL which may or may not lead to a cash offer being made for the the company in due course."

The Golds and Sullivan have each agreed to sell 14.81% of the club's shares to GIHL, with Brady agreeing to part with 0.23% and Bannister offering up 0.05%.

Yeung has until 5pm on July 16 to take up the offer and has already paid the club a £1.09million non-refundable deposit.

If GIHL did buy the maximum 29.9%, Yeung would instantly become the single largest stakeholder, taking over from the Gold brothers and Sullivan who currently own 78% of the shares between them.

In the new arrangement the Golds and Sullivan would see their stake fall to 23.22% each.

Brady's revised holding would be 0.54% and Bannister would retain 0.11%.

Meanwhile, manager Steve Bruce continues to push ahead with his restructuring and is holding talks with £2million-rated France international Olivier Kapo, with Scotland striker Garry O'Connor also close to securing a £2.6million move from Lokomotiv Moscow.