GILBERT KINCH, a former coach operator, has approached the board of Leicester City, the quoted Premiership football club, about tabling a bid.

If his offer succeeds, he could acquire the club for less than the £28m that Manchester United agreed to pay last week for Juan Veron, who has become Britain's most expensive footballer.

Leicester's shares ended the week at 51p, valuing the company at only £16.8m. Kinch, a former board director, has opened talks with Leicester just weeks after the withdrawal of a rival consortium bid led by Roy Parker, another former board director.

Parker, who controls 7% of the club, was being advised by Hawkpoint Partners, the boutique investment bank.

The relationship between the club, which is chaired by Sir Rodney Walker, and former directors has been uneasy. It is not clear where Kinch has found financial backing, but unless the offer reflects the underlying value of the company, the board is expected to kick the bid quickly into touch.

One adviser close to the talks said:

"My impression is that the incumbent board likes it as it is and the directors enjoy running the club."

Leicester last month raised £28m through a 25-year bond issue. The money, combined with sponsorship deals, will help finance the construction of a new 32,000-seat stadium.