Watford owner Gino Pozzo is believed, along with his father, to be eyeing up the purchase of a new side.
Portuguese top-flight minnows Tondela are said to be their next target, joining the Hornets and Udinese in their current bank of clubs.
The Pozzos are said to be up against stern competition to win control of the club, according to Portuguese newspaper O Jogo, with ex Chelsea star Deco and an un-named Chinese investor also interested.
Tondela won promotion to the top flight in 2015 for the first time in their history, having played in the fifth tier as recently as 2005.
They have finished 16th out of 18 in the Premiera Liga in both seasons since.
The Pozzo family's stake in football ownership is well known, and has seen various players move between their two current clubs - as well as Granada, which they sold in the summer - in recent years.
Even now, Orestis Karnezis and Molla Wague are on loan at Vicarage Road from the Serie A club, while midfielder Valon Behrami made a permanent move in the opposite direction during the summer.
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