Crisis-hit Hammers lose out as Tony Fernandes rules out bid

CB Holdings, the company formed by creditors which runs West Ham, is seeking new investment in the struggling Premier League outfit.

At one stage, it was hoped that Fernandes, the owner of airline Air Asia, who is also heading up Lotus's return to Formula One next season, was on the verge of buying a 51 per cent share in the Hammers.

But the man seen by many at the club as the best alternative to a potential buy-out by former Birmingham City co-owners David Gold and David Sullivan has since distanced himself from making an approach.

When asked if he had plans to buy into West Ham, Fernandes said: "No, not any time soon. I've got my hands full setting up a Formula One team so it's not something I'm going to do."

Gold and Sullivan have already made an offer for the club thought to be in the region of £50million, which was rejected by Icelandic bank Straumur, which owns 70 per cent of CB Holdings and values the club in the region of £120m.

West Ham are languishing in the Premier League's relegation zone and, despite a 1-1 draw with League leaders Chelsea at the weekend, are just one point above bottom club Portsmouth.

But the pressure is off Straumur to a certain degree to make an immediate sale after it was last week given until September 2010 to pay its debts.

Fernandes, who had held talks with the club's owners and even met manager Gianfranco Zola, admitted the future did not look bright for the struggling club he has been a lifelong supporter of.

He said: "I do worry about the future of West Ham. They're in a precarious situation and have been badly managed with a poor balance sheet.

"The fans, of which I'm one, deserve better but it's not particularly tempting for a buyer.

"But West Ham are a fantastic club that deserve a fantastic owner and they haven't had that for a long time.

"If you look at Chelsea and Manchester United's line-ups for example, there are so many former Hammers there which is so sad for us.

"A lot of great players have left the club and the club need to become great once again."

Following Fernandes's withdrawal from the running, West Ham's hopes either rest on potential American investment or else the bid of Gold and Sullivan.

The pair sold Birmingham City to Hong Kong billionaire Carson Yeung for £82m in October having bought the club 16 years ago for just £1.

Gold and Sullivan also previously owned a 30 per cent stake in West Ham while Gold grew up opposite Upton Park and was a former youth player.

But despite the pair's affiliation with the Hammers, Fernandes admitted he had no idea whether they could bring success.

"I don't know enough about their deal to really pass judgement," added Fernandes.