Representatives of Watford Football Club are understood to have met with at least one party interested in a takeover of the Vicarage Road club, and a second verbal offer is also believed to have been received.

The Watford Observer understands a Ukranian businessman and a Thai consortium are the two interested parties believed to have held negotiations to buy the club in recent weeks. One offer is thought to be as much as 70p per share, valuing the club at around £30m.

The Stock Exchange currently values the club at £8.1m.

However, Hornets chairman Graham Simpson says he has not entered into any discussions with Michael Ashcroft, the club's major shareholder, about selling the club but says he would "welcome a good offer".

This newspaper believes discussions are already underway and involve Keith Harris, the former Football League chairman who has overseen foreign takeovers at Manchester City, Chelsea, Aston Villa and West Ham United.

Harris was quoted in the Guardian in November as saying that "four Championship clubs are currently looking for buyers" and that he believed the Championship had become a more attractive market for investors.

He said: "The wealth differential has expanded between the Premier League and the Championship, so people are looking lower.

"A football investor is an inherent gambler. If they are saying I have time', they will pick a lower-placed club - which will cost less - and back themselves to take the club to the play-offs, to win the play-offs and then make a run in the Premier League with their own cash generation."

As well as external advice, the club is perfectly placed to draw on knowledge from within when it comes to such matters.

Strand Partners, the company Watford's major shareholder Ashcroft has a significant investment in, state on their website that they have "significant experience in advising clients on takeovers".

It would be difficult to imagine any potential move to buy the club happening without Strand having a key role to play.

However, when directly asked if Watford had been in discussions with at least one buyer, chairman Graham Simpson said it had had "no discussions" although he added the search for new investors was ongoing.

"I can categorically say we have had no discussions with any investors," he said.

"I wish we had an offer that was good I could consider. I have always said I would welcome it. If an opportunity came along, someone with deep pockets who was prepared to take this club forward, then I think that is worth considering. I would gladly stand down and go back to being a fan on the terraces. At this moment in time we have nothing."

Ashcroft, the deputy chairman of the Conservative Party, and the Russo brothers, Jimmy and Vince, are the club's major shareholders.

Ashcroft, who recently increased his stake in Tottenham Hotspur, owns 37.16 per cent of the club through his Fordwat investment vehicle, while the Russos' company, Valley Grown Salads, own 29.13 per cent. Simpson held 16.8 per cent as of June 2007.

Others shareholders include director Andrew Wilson, Tim Shaw, David Lester, Charles Lissack and Chris Norton.

"The majority shareholder of this club is Michael Ashcroft and I have never had a conversation with him about selling this club," said Simpson.

"He has never given me any indication that he wishes to sell this club. I don't talk to Jimmy and Vince Russo. I am the other majority shareholder and I am more than comfortable running this club as it is at the minute."

He added: "At this moment in time we are looking for other non-executive directors and other investors. We have had conversations but we've not met an investor yet. I would like to do that because I'd like to tell them what a brilliant club this is and how well we are doing."

Based on the interim accounts for the six months ending December 31, 2007 the club would appear to be facing financial difficulty unless they find new owners, recruit new investment to the current board, are promoted or make drastic cost-cutting measures to reduce the operating expenditure.

The club has net current liabilities of £11.1m, meaning that over the next 12 months they have £11.1m owing more than they are owed. Of this, £5.1m is a bank loan due within one year. A further £2.8m is due to trade creditors in excess of trade debtors.

There appears to be no money ringfenced for stadium development.

Simpson again confirmed there is a contingency plan in place should the club fail to win promotion.

"There is a Plan A and a Plan B," said the chairman. "If it is a Plan B we have to cut our cloth accordingly. I would never lead us down a road we went down five or six years ago."