Russian closes in on an Arsenal takeover

Usmanov went on a new share-buying spree yesterday, snapping up 6.5 per cent of the club in a series of transactions that take the total investment of his company, Red and White, to approximately £125million.

A second announcement to the Stock Exchange that he has swept up another

5.9 per cent has prompted fevered talk that a hostile takeover could be imminent.

Although it has not yet been officially revealed, it is understood that the vast majority of the shares sold to the Uzbekistan steel tycoon were from the hedge funds and nominee companies which hold approximately 12 per cent of the club's shares.

Among the sellers are Lansdowne Partners, who previously held 2.8 per cent, and Dublinbased Birol Nadir, son of the businessman Asil Nadir.

Sources close to Usmanov believe he may have paid up to £10,000 per share for some stakes, an astonishing figure given that the market price is around £8,000.

He is now the second-biggest shareholder in the club behind Danny Fiszman, who owns 24.11 per cent, and it is bound to trigger speculation that he is planning a full-scale takeover bid.

The spending began yesterday afternoon when it was announced that he had bought 320 shares for £2.64m to increase his shareholding in Arsenal to 15.1 per cent.

But, in another twist to the drawn-out takeover saga, Stan Kroenke will resist any attempts for the Russian to acquire his 12.2 per

Russian ups Arsenal stake

cent stake. The American sports mogul purchased his holding in April when it appeared he would mount a full takeover bid with former vice-chairman David Dein.

Although Kroenke has not increased his holding for five months, sources close to the American insist that he is in it for the long-term and, even though he could sell his holding for a tidy £20m profit, there is a certain amount of pride involved in not selling out.

Usmanov drew the battle lines three weeks ago when he teamed up with Dein to try and gain control of the club.

The former Arsenal director traded his

14.6 per cent stake to Usmanov and his Iranian partner Farhad Moshiri for £75m and was installed as chairman of the pair's investment vehicle Red and White Holdings.

Usmanov made his intentions clear when he told the Evening Standard that he believed Arsenal were "undervalued" and his aim was to "steadily increase my package".

The Arsenal board insist the club do not need foreign investment and they are in a good position to fend off a takeover bid.

This stance will be further supported next week when Arsenal announce stunning financial figures that reveals total turnover rocketed to £190m last season to make them the richest club in Britain.

Fiszman insists that he will stay at the club way beyond next April, when the formal ' lockdown' agreement signed by the directors to ward off a takeover threat expires. The Arsenal Supporters' Trust have reminded Usmanov and Dein that they are opposed to a hostile takeover.