Leeds in talks on asset sales

Debt-ridden English Premier League club Leeds United said on Monday they were being circled by an unspecified number of prospective bidders, but warned that a bid for their shares was not on the table.

Leeds, second from bottom of the premier league, have been given until January 19 by their creditors to find a buyer or major investor as they try to avoid going into administration.

The English club, who are also battling against relegation after selling off a number of key players in a bid to cut debts, said the prospective bidders were interested either in buying or providing funds.

"However, none of these interested parties' proposals contemplates an offer for the company's shares," the club said in a brief statement.

Shares in the club, best known for their trophy winning team of the 1970s, have been the focus of frequent takeover rumours over the past two months.

In December, the stock hit a 20-month high on talk of a possible takeover by Chinese businessman Xu Ming.

Industry sources told Reuters that outgoing chairman John McKenzie could spearhead a takeover bid by a group of wealthy Chinese investors as the club attempt to find a way to cut their 80 million pounds ($147.5 million) of debt.

AVOIDING ADMINISTRATION

Leeds must stump up fresh capital by January 19 to avoid becoming the first Premier League team to go into administration, a form of creditor protection.

Xu, who owns Dalian Shide, a Chinese first division club, is one of China's richest men, according to Forbes.

Sheikh Abdulrahman bin Mubarak al-Khalifa, a member of Bahrain's royal family, has also been rumoured to be interested in buying the club on behalf of a group of Arab investors.

Leeds shares have come off sharply from highs of around 7.5 pence in mid-December. They closed on Friday at 4.38p.

The club have spent millions buying international players like England's Robbie Fowler and France's Olivier Dacourt. But, despite reaching the semi-final of Europe's Champions League in 2001, success has proved elusive.

Their losses have mounted, reaching a record 50 million pounds in the year to June 30, and Leeds have gone through three managers since July 2002.

The club's most valuable assets include the players, such as strikers Mark Viduka and Alan Smith. New chairman Trevor Birch recently said they did not have to sell any players in the January transfer window.