By Elena Moya

U.S. hedge fund Polygon and Swiss investment bank UBS are preparing a takeover offer for English Premier league soccer club Newcastle United, a source familiar with the talks said.

Newcastle said on Friday it had not received a takeover offer after its shares surged on speculation of a buyout offer. The Daily Mail newspaper reported on Friday that the deal, including the club's debt, was worth 227 million pounds.

Polygon made an initial approach for Newcastle in June and held talks with majority shareholder John Hall, who with his son, owns more than 40 percent of the club. Newcastle chairman Freddy Shepherd owns 28 percent of the club.

In August, Newcastle confirmed it was also in takeover talks with investment firm Belgravia Group. A Belgravia spokesman said on Friday the company was still in talks with Newcastle.

The interest in the Tyneside club follows a recent spate of buyouts of British soccer clubs.

Last month east London Premier League team West Ham United agreed a 85 million pound takeover by an Icelandic consortium led by Eggert Magnusson and bankrolled by the billionaire chairman of Icelandic bank Landsbanki, Bjorgolfur Gudmundsson.

Premier League champions Chelsea, Manchester United, Aston Villa, Fulham and Scottish top flight side Hearts are now all in the hands of foreign owners.

Alongside personal sporting interests, investors have been attracted by the Premier League clubs' highly visible earnings underpinned by loyal fan bases, land values and ballooning media revenues as a result of the latest round of television deals.