Ranson's 'inadequate' bid leaves City cold

The former Manchester City defender Ray Ranson issued a statement to the stock exchange last night saying that he has made "indicative proposals" to City's board about buying the club, but it is understood that there is little enthusiasm among the hierarchy at the City of Manchester Stadium for what he has put forward. No formal bid has been made, and the "proposals" Ranson has made are felt to be inadequately detailed.

City's board had earlier released a statement saying that it "remains in preliminary discussions with third parties that may or may not lead to an offer being made for the company."

It is understood that a group of American investors are front-runners as far as City are concerned, but no concrete developments are expected in the coming days or even weeks. City have been made aware by at least one potential bidder that they need to make Premiership safety a mathematical certainty before talks move towards a conclusion.

A second American group is hovering on the periphery, its credentials unproved. Reports that the former Thailand prime minister, Thaksin Shinawatra, has made a preliminary approach, were rebuffed yesterday by his lawyer. "I talked to my boss and he said it's just a rumour. There's no substance in it," Noppadol Pattama said.

City have made no secret of the fact that they are looking for investment and have made repeated statements since December about being in talks with various unnamed groups.

Ranson has not endeared himself to the board with two previous failed attempts to take control at Aston Villa and one failed attempt to invest in Newcastle. There seems to be particular confusion about how his bid for City - said to be worth £90m, and backed by British money - would clear City's debts and also provide fresh money for players.

City's major shareholders are the chairman, John Wardle, and his business partner, David Makin, who own 29.75 per cent between them.

They are owed £20m in private loans that would actually require £25m to repay when interest and fees are added. The clubs also has external debts of more than £32m. Any full takeover would involve assuming these costs, as well as actually buying all the shares, for perhaps £20m-plus. From a £90m package, that could leave a transfer kitty of around £10m, but the board has yet to see any evidence that Ranson's group has the necessary money.

Ranson's statement last night said: "Ray Ranson can confirm that he is interested in buying the club and has, over the past couple of months, made indicative proposals to the club concerning a possible offer."

"Ray is yet to receive a positive response from the board to these indicative proposals and is currently considering making a further proposal to the board of the club. Ray recognises that the club is heavily indebted and his business plan is not dependent on leveraging the club further.

"Together, Ray and his partners have developed an operational plan for the club that is aimed at taking the club forward to the next level, on and off the field."

"Shareholders should be aware that there can be no certainty that a formal offer will be made. But the likelihood of a formal offer being made to the shareholders may be improved with the club's cooperation in further confirmatory due diligence."

Ranson, 46, started his football career with City and also played for Birmingham City, Newcastle United and Reading before enjoying a lucrative business career, becoming a multi-millionaire from insurance and football finance.