Takeover offer for Sunderland FC

Bob Murray, chairman of Sunderland FC, has launched a £1.5m ($2.8m) bid for the club after buying broadcaster BSkyB's stake in the business.

Mr Murray is already Sunderland's leading shareholder, holding a 37.6% stake, and now hopes to take full control of the Championship side. Mr Murray said the club would find it easier to attract more investment by having a single majority owner. Sunderland delisted its shares from the stock market in August.

A lifetime Sunderland supporter and board director since 1984, Mr Murray agreed to buy BSkyB's 4.76% holding in the Wearside club on Tuesday - taking his stake to 42.3%. Under stock market rules, Mr Murray is required to make an offer for the remaining shares that he does not already own at the same price paid for the BSkyB holding of 31p a share.

Should the offer be fully accepted, Mr Murray said he expected to pay a maximum of £1.53m for the remaining shares. He also stressed that fans who wanted to keep in touch with the club's financial affairs could retain a small number of shares, enabling them to attend annual meetings. "The football sector is experiencing significant changes and uncertainty," Mr Murray said in a statement. "The recent speculation surrounding Malcolm Glazer and Manchester United has shown the unsettling effect possible where there are a number of disparate interests," he added. "I believe that this offer will strengthen the company and remove the potential for that type of uncertainty."

Sunderland were relegated from the Premiership in 2003 but are currently pushing for promotion. The club managed to reduce its losses last year from £20.6m to £1.2m after selling a host of leading players. However, the club's turnover dropped sharply from £42.5m to £28.5m over the same period, because of a fall in broadcast revenues. BSkyB bought its stake in Sunderland in 1999 as part of a five year media partnership deal. The deal expired last month.
