Disgraced Newcastle United directors Douglas Hall and Freddie Shepherd forced their way back on to the club's plc board yesterday prompting the chairman and two other independent directors to resign in protest.
But in a move interpreted as a huge vote of no confidence after the appointment of the two directors, Newcastle's stockbrokers BT Alex Brown International Limited also resigned. By the end of trading last night Newcastle's plc's share price was down 3.5 pence to 94.5 pence.
The chairman Denis Cassidy and the directors John Josephs and Tom Fenton went when a fourth independent director, John Fender, threw his weight behind the club's three full-time directors, who were backing Hall and Shepherd. Fender is a former director of Cameron Hall Developments, Douglas Hall's family company.
Freddy Fletcher, the club's chief executive, has been appointed acting chairman while the directors search for a new independent chairman. Last night it was unclear why Hall and Shepherd, who were ousted in March after newspaper revelations about their personal lives which included disparaging remarks by them about Newcastle fans, had decided they must regain full control now.
Under the terms of the club's flotation on the stock market last May, the two men had to agree not to sell any shares for an extended period. But from next Monday they are free to do so, prompting speculation that a take-over bid could be on the way.
Yesterday Fletcher insisted there had been no talks with potential buyers and no bid approaches. A source close to Hall and Shepherd suggested the recent £8 million purchase of the striker Duncan Ferguson from Everton had been the turning point after the two men found negotiations over the deal "torturous" as they were obliged to get final permission from the main board before signing any contracts. Ruud Gullit is likely to be the only winner in the whole affair. His hand will be strengthened because the two major shareholders are back in total control and although the pair are free to sell their shares next week, they may choose to invest in Gullit's teambuilding.
Gullit, already guaranteed £4.4 million to spend following the sale of David Batty to Leeds yesterday, has made Ajax's Richard Witschge his number one target. Dean Saunders's transfer to Benfica could see Sheffield United signing two strikers from the Portuguese club. United have been offered the former West Ham striker Hugo Porfirio and the Swede Martin Pringle in an exchange deal that would benefit both cash-strapped clubs.
Meanwhile Rangers may sign Stefan Klos before Christmas after the Borussia Dortmund goalkeeper was given permission to talk to the Ibrox club.
Marko Viduka's agent last night insisted the runaway Celtic striker backed the Parkhead club's stance on witholding payment of his £3 million transfer fee until he is ready to return to action. The Australian international is still in Zagreb.
Manchester United's chairman Martin Edwards has agreed to meet supporters opposed to Sky's proposed £623.4 million take-over at Old Trafford tomorrow.
