Saints Deal In Danger - 04/11/2007

Southampton FC could be forced into a fire sale of players in the January transfer window to cut costs and generate working capital if takeover talks remain deadlocked. The initial approach by hedge fund Sisu Capital is understood to have been rejected by leading shareholders. But there still remains a possibility that the hedge fund will meet Rupert Lowe, the former Southampton chairman, who speaks for about 29 per cent of the shareholders and is regarded as the key to unlockung the deal. The other major shareholder is Michael Wilde, also a former chairman, who has a 16 per cent stake. The club has been hard hit by the end of parachute payments this season and any sale of players would probably bring to an end what are already relatively faint hopes for promotion back to the Premiership.