Sullivan in £40m paper sale

Aug 8 2007 By Will Oliphant, Birmingham Mail

BIRMINGHAM City co-owner David Sullivan has sold his £40 million share in Sport Newspapers.

The Welsh-born businessman owns 50 per cent of the company that produces the Daily Sport and Sunday Sport and the deal is expected to bring in a total of £50 million.

But the club was today tight lipped over a possible transfer market windfall for Blues in the wake of the deal.

The reverse takeover deal is with internet company Interactive, which supplies adult content to mobile phone users.

It will see Sport Newspapers become a public company on the alternative investment market.

It is not known whether the move has any links to news that Sullivan could be planning to sever his 15-year link with the club. It is thought he could net a further £18 million if he was to sell his remaining 24 per cent share in the club which he owns along with Gold brothers David and Ralph.

The relevation comes not long after news that Carson Yeung had spent an estimated £20 million buying up shares in the club in a bid to become a majority share holder.

But the Chinese businessman is still thought to be just shy of the 30 per cent ownership he needs to force a takeover bid.

And despite his heavy investment, manager Steve Bruce said he would not be railroaded into buying Chinese players.

Yeung is only one of a flurry of foreign investors who have recently been attracted to Premiership clubs in England.

It is estimated that the club's move to the Premiership would be worth around £60 million from increased television revenue, gate receipts and sponsorship.