Newcastle shares issue

NEWCASTLE United could raise almost £200 million from a spring share flotation, but none of it will be used to swell Kenny Dalglish's transfer kitty.

Newcastle, who revealed their flotation prospectus yesterday, expect to be valued at between £172 million and £193 million when they join the stock market at the start of April.

But joint chief executive Freddie Fletcher confirmed that no new money was being made available to Dalglish.

Newcastle hope to raise £47.4 million from the float, but £21 million will go towards paying off debts.

A further £12 million will be used to pay future instalments on current players' transfer fees, and the club's proposed youth training scheme will be boosted by up to £10 million.

Co-chief executive Mark Corbidge said the £80 million needed to build a new stadium and turn St James' Park into an indoor training centre and sports complex would not be raised by further share issues.

"There are a number of ways we can raise the money that do not involve rights issues or straight bank loans," said Corbidge, who refused to say which option the board had chosen.

Newcastle are setting aside 10 per cent of the placing for fans the offer price expected in the range of 120p to 135p.

But some fans could be disappointed, as preferential arrangements have been made for a total of 33,000 people, including season tickets holders, eligible employees and existing shareholders.

The club warned that as a result, applications from the public were not guaranteed to be successful.

The rest of the shares on offer will be placed with institutions when, they start trading on April 2nd, if all goes to plan.

Corbidge also refused to be drawn on what would happen if planning permission for the proposed Castle Leazes site for the new stadium is refused.

Newcastle chairman Sir John Hall was not at the conference fuelling speculation that he is withdrawing from his previous hands-on role.