Offer Talks Terminated

    RNS Number : 7385X
  Sheffield United PLC
  27 June 2008
   

    NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

    For immediate release: 27th June 2008

    Sheffield United plc
    (the "Company")

    The Board of Sheffield United plc ("the Board") announces today that further to the approach made by Scarborough Group Holdings Limited
("Scarborough") announced on 30 May 2008 Scarborough has informed the Company that it is withdrawing its proposed cash offer ("the Offer")
for all the shares not held by the concert party and has no intention of making an offer for the Company at this time. This announcement has
been made with the consent of the offeror.  

    Secondly, in place of the intended equity fundraising as previously announced (also on 30 May 2008), the Company and Scarborough are
discussing options by which Scarborough may roll over its current £10 million loan into convertible loan notes. The detailed terms of the
documents will be agreed between Scarborough and the Board and will be subject to approval by shareholders at an Extraordinary General
Meeting. It is envisaged that further funding will be sourced from various parties associated with the Group on the same terms as the
convertible loan notes proposed to be issued to Scarborough.  

    This change has been undertaken to ensure that the required finance is in place in good time within the summer transfer window.  

    A further announcement will be made when appropriate and it is intended that a circular setting out further details of the above
proposals, and including notice of the requisite general meeting, will be despatched to shareholders in due course.  

    This announcement does not constitute an announcement of or form any part of any offer or invitation to subscribe for, underwrite or
otherwise acquire, or any solicitation of any offer to purchase or subscribe for securities.  


    Enquiries: 

 Sheffield United PLC                                 [phone]
 Jason Rockett    
 Simon Capper

 KBC Peel Hunt (Nominated adviser and broker)         [phone]
 David Davies 
 Oliver Stratton

 Tavistock Communications                             [phone]
 Jeremy Carey    




This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
OTTFKOKNBBKDDAB