LONDON (Reuters) - Second division club Wolverhampton Wanderers have rejected a £20 million pound takeover bid from a consortium led by former Scotland midfielder Graeme Souness.

"(The bid) undervalues Wolves today and the business opportunity available, especially in light of interest from other parties," the club said in a statement on its Website (www.wolves.premiumtv.co.uk) on Thursday.

Wolves' chief executive Jez Moxey added: "Confidential discussions have taken place with a number of potential investors."

Wolves, relegated to the Championship in 2004 after one season in the top flight, are 10th in the table.