Rangers have announced that an £18m takeover bid from Phoenix Suns owner Robert Sarver has been rejected by the Scottish Championship club.

The Gers confirmed yesterday that the American NBA team owner had approached them regarding a possible bid to buy the club.

However, Rangers have now announced to the Stock Exchange that "the proposal does not adequately value a controlling interest".

The statement read: "While the directors welcome Mr Sarver's approach, they believe that, notwithstanding the current financial difficulties, the proposal does not adequately value a controlling interest in the company and accordingly the resolution to approve the placing is unlikely to achieve the 75% majority required. The directors do not intend to hold the general meeting which would be necessary to implement the proposal.

"The company is managing its cash resources carefully and will require further funding before the end of January. The directors are in discussions with Rangers' significant stakeholders with a view to arranging finance for the club. This is likely to comprise loans in the short term and possibly equity in the medium term. The board has invited Mr Sarver to consider participating in a similar discussion alongside other supportive shareholders."

Last month, Newcastle United owner Mike Ashley tried to increase his nine per cent share in the Scottish outfit to 29.9%, but the move was rejected by the Scottish Football Association.