Eggert Magnusson has confirmed he is engaged in "initial discussions" with West Ham regarding a possible takeover.

The Icelandic businessman, who is also head of his country's football federation and a Uefa executive committee member, yesterday insisted his interest was genuine.

The £75 million behind the bid is expected to be provided by a respected Icelandic financial institution - although not the investment bank Straumur-Burdaras of which Magnusson is vice-chairman.

A statement to the stock exchange said: "Mr Magnusson confirms that he and his advisors have engaged in initial discussions with the company (West Ham) and its advisors in respect of a possible offer, although there can be no certainty that such discussions will lead to an offer, nor of the price of any such offer."

Iranian businessman Kia Joorabchian is also interested in investing in the club but says this latest approach is a "red herring", even though his own bid appears to have run out of steam.

However Magnusson (59) said: "I have been following events for the last year and have seen there have been some bids from other interests but nothing has happened.

"I would suggest that if there are any red herrings, it is the other bids, not our interest."