Consortium 'still intend to go ahead with Owls takeover'

The group, being led by Kevin Mundie, a senior executive at Dubai-based Certified Oilfield Rentals, did confirm that Russell Morgan, a former sports agent jailed over a finance scam, has been completely sidelined from any part in talks surrounding a proposed deal.

But a spokesman was unable to give any firm indication of when the 2m funding – announced as "immediate" by the club three weeks ago – would be delivered.

A club source last night acknowledged a growing acceptance at Hillsborough that any takeover deal would probably not now materialise until days before a winding-up petition over unpaid tax is due to be heard at the High Court on November 17. Talks are also taking place with other, unnamed investors.

The spokesman for the Mundie consortium said: "Discussions are continuing and are positive. The intention is still to go ahead."

The talks involve seven would-be investors, with Mundie the lead financier. All are understood to be British.

The spokesman added: "Russell Morgan now has nothing at all to do with any of the talks taking place."

Last week, the Yorkshire Post revealed that Morgan had been involved in talks over the proposed investment despite being given a 16-month prison term at Cardiff Crown Court last September.

He was jailed after admitting 11 charges of obtaining money while an undischarged bankrupt and two of making a false statement.

When Morgan's involvement emerged, it was confirmed he had met club chairman Howard Wilkinson and had taken part in talks relating to the proposed takeover.

The consortium spokesman stated Morgan would not be providing any funding or taking any part in the financial or management side of the investment.