Birmingham City have confirmed shareholder Grandtop International Holdings Limited is seeking to increase its investment in the club, which may prompt a takeover bid.

The Blues this morning released a statement in response to reports of fresh interest from the Hong Kong-based company in acquiring further shares.

“The board of Birmingham note the recent press speculation and confirm they have received an approach from Grandtop International Holdings Limited (’Grandtop’) - which may or may not lead to an offer for the entire issued share capital of the Company,” the statement from the Barclays Premier League club reads.

“Grandtop is currently a 29.9 per cent shareholder, having acquired this holding in 2007.”

The board are promising to keep interested parties up to date as soon as further information is available.

“As shareholders will be aware, previous approaches did not proceed - and the issue of the funding of any possible offer will be a major factor in determining how the company responds to the approach,” their statement continues.

“A further announcement updating shareholders will be made when appropriate.”

The Carson Yeung-backed group failed in a takeover bid for the club in 2007.