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The Dubai International Capital (DIC) yesterday delivered a major setback to Newcastle United owner Mike Ashley's hopes of selling the club when it revealed it had no intention of investing in football. According to reports, Ashley is currently in Dubai and has held negotiations with DIC officials in an attempt to sell the club for an estimated £400million (Dh2.6bn).

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The Newcastle owner made his decision to sever all links with the English club after a week of severe fan unrest at St James' Park following the resignation of the team manger Kevin Keegan. The DIC was also heavily involved with a potential £500m takeover of Liverpool Football Club, which it came close to securing earlier this year. But in a statement, the private equity arm of the Dubai Government said that it had no intention of either resuming its interest in the Anfield club - despite constant press speculation - or any other club.

The announcement comes as a major setback to Newcastle fans who had been hoping that the DIC would become the second UAE financial organisation to invest in the English Premier League just weeks after the Manchester City takeover by investors led by Sheikh Mansour bin Zayed. According to some reports, the Abu Dhabi-based investors considered buying Newcastle before opting for Manchester City. The DIC also stated it had not appointed PCP capital partners, a private equity firm, to act as its intermediary in any football takeover, as had been reported.

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The DIC statement said: 'Following inaccurate media speculation about Dubai International Capital (DIC) and Liverpool Football Club (LFC), DIC can confirm that it is not involved in any negotiations to buy LFC or any other football club; nor is DIC or any other Dubai based party aware of any consortium or vehicle involved in a bid. DIC has not mandated PCP to act for DIC in any matter whatsoever. DIC would like to wish LFC and its fans a successful future.' Ashley bought Newcastle last year but is deeply unpopular with fans.

He announced over the weekend he wanted to end his interest in the club because of constant criticism and because he no longer felt safe attending matches. Ashley is reported to have spent £244m of his own money buying the club and investing in the team. Some Newcastle fans are to meet in the city tonight to discuss speculation surrounding the club. John Gibson, a lifelong fan who has covered the club for the Newcastle-based newspaper The Evening Chronicle since 1966, is due to address tonight's meeting. He said: 'I speak on behalf of all the fans when I say that we would welcome a takeover from the UAE. We don't care if it's from Dubai or Abu Dhabi but it looks as if that's not going to happen now.