Celtic reject McCann offer

inject #18m into Parkhead.

It was made by a consortium led by Montreal based Scots millionaire

Fergus McCann.

Mr Michael Kelly, the director responsible for handling Celtic's

public relations, described the offer as fantasy.

He signalled that nothing had changed in the three-year saga for

control of the club -- and described yesterday's bid as a ''rehash and

reheat'' of previous offers which even now had never been formally

lodged.

Mr McCann yesterday called a news conference, which for the first time

officially confirmed that he had joined with Mr Brian Dempsey, an

ex-Celtic director, to wrest control of the club.

Also in the consortium is Mr John Keane, managing director of

Edinburgh-based Keane Construction -- like Mr Dempsey, a 50% owner of

the Strathvale Group, property developers; Uruguayan born Mr Albert

Friedberg, who heads a Toronto-based commodity and bond-trading firm;

and Bermudan based tax exile Mr Edmund Keane, founder of UK carpet

retailers Colonel Gee's. They did not attend the launch.

The offer is to pump #12.5m into the club, with Mr McCann investing

#8.5m, and the others #1m.

Mr McCann announced he had committed another #2m to fund loans to

Celtic supporters to buy shares -- then invited the fans to invest

another #5.4m through a public share offer to ensure widespread

ownership.

The consortium emphasised the offer was not a takeover bid but

designed to recapitalise Celtic by underwriting a shares issue and aimed

at returning the club to former glories.

Mr McCann's performance can best be described as lacklustre.

Embarrassingly, as a ''lifelong Celtic supporter'' he was unaware the

club had lost to its oldest rivals Rangers on Wednesday night.

Mr McCann emphasised the consortium would not have more than 50%

control, diluting fears of a future sale and takeover by a third party.

However, he did expect to be chief executive at the club for five

years, when his shares would be offered for sale to supporters.

Both Mr McCann and Mr Dempsey denied the offer was hypothetical. They

warned they would ''walk away'' from Celtic if it was rejected.

Over the next few days, they will approach the existing 150

shareholders to approve the cash injection and fresh share issue; such a

strategy would require a two-thirds majority. Eventually, an emergency

general meeting of shareholders would need to be held.

They are also taking advice on a legal document signed by the Celtic

board -- chairman Mr Kevin Kelly, Mr Michael Kelly, Mr Chris White, Mr

Tom Grant, Mr Jack McGinn, Mr David Smith, and Mr James Farrell -- that

binds them together in a pact.

The ruling Kelly-White family dynasty and its supporters hold in

excess of 53% of existing shares. The rebel consortium members would

each hold about 9% of shares, with the 50% reached via fans' subscribing

for shares.

''There is no great difference between his latest declarations to the

press and his previous statements,'' Mr Kelly said.