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Leeds have confirmed an exclusivity period granted to a potential investor has ended - but would still welcome approaches from potential new partners.
Leeds United Supporters Trust earlier revealed the proposed takeover, believed to involve investors from the Middle East, had collapsed after they had been granted due diligence.
It is understood concerns about the takeover emerged when Leeds chief executive Shaun Harvey flew out to Monaco to meet with chairman Ken Bates in an effort to push the deal towards a conclusion.
The Elland Road club have now released a statement which read: "Leeds United ('The Club') announces that the exclusivity period granted to a potential investor as mentioned in the statement of 26 June has ended.
"The club remain happy to continue discussions, but not on an exclusive basis, so as not to prevent other options passing.
"The first priority must be to ensure that the credibility of any future investor or ultimate owner is such, that the Leeds legacy and its future is in safe hands, back in the Premiership.
"The club will continue to be receptive to approaches from potential new partners who can establish that they have the necessary credentials.
"Meanwhile, it is encouraging that there is a new spirit at the club under the management of Neil Warnock and his 10 new signings."
Leeds first confirmed they were in talks with an unnamed group of potential investors on May 29 and said in a statement they welcomed potential investment.
The club then announced on June 26 they had granted an exclusivity period to enable a potential investor to carry out the appropriate due diligence and that they "anticipated this will be a fairly straightforward process".
But Leeds had steadfastly refused to comment further on the matter, leaving fans mystified and angry at a perceived lack of progress.
During this time LUST have twice issued public pleas for information on behalf of the club's supporters - but nothing had been forthcoming until Thursday's announcement that the deal had collapsed.
Bates, 80, who took control of Leeds in January 2005, 18 months after he sold his shares in Chelsea to current owner Roman Abramovich, has already met with a wave of hostility from fans on various media outlets, including Twitter.
He is not scheduled to be present at Saturday's home Capital One Cup tie against Shrewsbury but is expected to return for the opening-day npower Championship clash with Wolves at Elland Road the following week.