I'm going to have to pay the big money, admits O'Neill

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O'Neill is understood to now be ready to pay West Brom around £8 million for wantaway skipper Davies who is also a target for Tottenham.

The Irishman initially valued England Under-21 defender Davies at around £6 million and more talks are set to be held between Villa and the Baggies.

O'Neill is finding a similar scenario with Porto defender Boswinga with his price also going up.

The Villa chief said: "I have to admit now that inflated prices is the norm at the moment so I may have to re-evaluate my thinking about this.

"Sometimes you have to go by what the other club says, but I am not panicking at all. Like everything else you always have to have a plan A, plan B, plan C, call it what you want.

"But the people I have pursued to begin with are worth pursuing. We have a number of opportunities and I would like to see those opportunities through to the end."

Davies is desperate to return to the Barclays Premier League but Albion will not be rail-roaded into selling the player if the price does not reach their valuation.

West Brom boss Tony Mowbray insisted reports a £15 million price tag had been placed on Davies were "mischievous".

O'Neill has so far only signed the West Ham duo of Marlon Harewood and Nigel Reo-Coker this summer.