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Polygon hedge fund looks to English football

The US-based hedge fund Polygon has joined forces with investment bank UBS in an attempt to buy out the English premiership football team Newcastle United, it has emerged.

In a statement released to the London Stock Exchange this morning, the club's majority shareholder Sir John Hall confirmed that he had been approached to sell his shares, which make up about a third of the club's parent company Newcastle United plc.

However, in the statement the club hinted that the offer for the 28.8 per cent stake was by no means a done deal.

"Sir John Hall… has received expressions of interest to acquire its shareholding, which may or may not lead to the disposal of its stake," the statement said.

If a deal was eventually made it would see Polygon, known for its aggressive activist stance in the running and restructuring of the companies it invests in, take effective control of the famous football club.

The move by Polygon marks an increased interest of the investment world, particularly hedge funds, in investing in English premiership teams, who can have potentially high profits from ticket and merchandise sales, being globally recognized brands.

Last year, hedge funds were actively involved in the takeover of Manchester United – then the richest football club in the world.