Polygon, best-known for the aggressive positions it has taken during corporate restructurings at British Energy and Monsoon, the fashion retailer, has been working with UBS, the investment bank, for several months on a buyout proposal. This could see it take control of the listed Newcastle United plc, parent of the famous northeast club. It was not clear this weekend whether Polygon has already made an approach to Hall. Through a Guernsey-based company called Wynyard he controls 28.5% of Newcastle United.
Douglas, Hall’s son, is connected to further interests that account for about another 13% of the shares. Shepherd Offshore, the company connected to the Newcastle United chairman, Freddy Shepherd, owns another 26.7% of the club.
Talks between Hall and another suitor broke down last November, although it has been clear for some time that the property developer would be open to selling his shareholding.
Hall took control of Newcastle United for an estimated £3m in 1991 following a bitter battle with the former owner, Gordon McKeag, but stepped down as chairman in 1997.
Polygon’s interest in Newcastle reflects growing interest in the football industry from hedge funds. Och-Ziff Capital Management, Perry Capital and Citadel were key investors in Malcolm Glazer’s Manchester United takeover last year.
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The Glazers are examining plans for an autumn refinancing that will include taking out the more expensive payment-in-kind debt.