Shepherd on way out as tycoon buys Hall shares at Newcastle

Ashley launched his dramatic takeover by agreeing to pay the Hall family £55million for the stake they have held in the club since the end of the Eighties, a holding which cost them just £3m.

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It was a move that has left Shepherd isolated, with his 29 per cent stake in Newcastle now the target of Ashley's bid for full control.

The ruthless 43-year-old businessman, estimated to be worth £1.9billion, built his fortune through the Sports World store and now wants complete control of Newcastle United.

"He likes to park his tanks on people's lawns," said one banker who has dealt with the reclusive businessman.

Shepherd called an emergency board meeting yesterday afternoon to formulate his strategy, and to mull over the offer of £1 a share for the 38 million he holds in the club.

He spoke last week about his desire to keep control and of how the club was almost unsellable.

That was seen in some quarters as Shepherd's declaration to fight the takeover, or at least to hold out for a superior price to that which the Halls accepted and which the rest of Newcastle's shareholders have been offered. They have 60 days to accept.

But those close to the Ashley camp insisted last night that talks between the Halls and Ashley have been limited to the last 10 days and that Shepherd may not have been aware of the move yesterday which so weakened his position.

Ashley is said to be supremely confident that he can acquire more than 51 per cent of the club, marginalising Shepherd's position to the point where he would be forced to sell.

"He wants to completely take over the business," an insider told Sportsmail.

"The plan is to buy out Freddy Shepherd in a matter of weeks. It is a very strong offer, 19 per cent above the premium.

"If Freddy accepts, then there are other shareholders who would have to accept as well. If we get there more quickly, he will then set out his aims and plans.

"Mike Ashley is a winner. Just look at what he has achieved. It's about building a business and then maximising the brand.

"There are opportunities with this club to take the brand more widely."

Ashley would create a new board of directors if he does gain control of the club, with the intention of giving the club the benefits of a high international profile, a position which is enjoyed by such Premiership clubs as Manchester United and Liverpool.

Sportsmail also understands that he will attend Newcastle games, a rarity for a man so private that he has rarely been seen outside his Hertfordshire mansion.

"Mike Ashley is a major player in the sporting world and I am convinced that he is the right person to take my place and take the club forward," said Sir John Hall, who had previously tried to sell his family's holding to the Belgravia Group and Polygon and U.S.B.

Significantly, the move has also raised questions over the position of Sam Allardyce, the manager who was only appointed by Shepherd last week.

The former Bolton Wanderers boss was given an assurance by Ashley in a prepared statement, but that is by no means a long-term guarantee.

Ashley said: "I am delighted to have this opportunity to invest in Newcastle United. The club has a fantastic infrastructure, for which Sir John and the board must take much of the credit.

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"I am pleased that Sir John has agreed to remain as life president of the club. Newcastle United has a wonderful heritage and the passion of its fans is legendary. I am sure that, like me, they are already excited about the prospects for next season under the new manager's stewardship."

It is understood that, in the short term, Allardyce would be given more financial backing in the transfer market, but that he would soon be expected to show a dramatic improvement in the club's ailing Premiership form.

Allardyce moved to St James' Park for an opportunity to break into the top four, but not even he could have imagined how high the expectations at Newcastle would rise in a matter of days.

Wigan chairman Dave Whelan fell foul of Ashley at the start of 2000. The pair clashed when Ashley gave evidence to the Office of Fair Trading over the fixing of the price of football shirts.

Whelan had said: "There's a club in the north and you're not part of it, son."

That could be Ashley's parting message to Shepherd.