The takeover of Birmingham City is looking increasingly unlikely to go ahead, according to the Blues' owners.

Speaking as the Blues unveiled Alex McLeish as their new manager, chairman David Gold said he now thought the chances of Hong Kong businessman Carson Yeung taking control were just 50-50, while co-owner David Sullivan went further, labelling the deal "dead in the water".

Asked about the takeover, Gold said: "I started off believing bid was 90 per cent assured and a couple of weeks ago I reduced that to 75 per cent. Now I believe it's only 50 per cent but only time will tell.

"The (current) board must actually take charge of the club and fully act as if the takeover doesn't happen, that's why we brought in Alex and are looking forward to the future.

"We are working on the basis the deal will not go ahead. If it does, that's another story.

"David (Sullivan) and myself have been at this football club nearly 15 years and that's how it will continue until things unfold and we see where we are going in the future."

Sullivan was even more fortright, saying: "I really can't see the takeover happening. It's dead in the water as far as I'm concerned."

Gold admitted takeover rules which forbade Birmingham giving former boss Steve Bruce an improved deal but allowed them to appoint McLeish was strange.

"It's bizarre, I've got to say,'' he said.

"It's bizarre in the sense that the takeover board wouldn't allow you to enhance an existing contract, however it is quite in order, in the event that that contract ends, it is within the power of the board to offer a brand new contract to a brand new person.

"It is a bit unusual and it surprised us, that's why we got legal clearance about what we could do.''

McLeish, meanwhile, admitted he is aware of the financial situation he will be in with regards transfers.

"I know the parameters and I'm comfortable with that,'' he said.

"I've always had a desire to come to the Premier League. I'd love to be managing in the Premier League for a considerable time.''

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