St Mirren will not be sold to an English syndicate after chairman Stewart Gilmour discovered one of the potential investors has a conviction for fraud, it is understood.
Reports on Thursday morning claimed the group were in "advanced talks" as they tried to strike a takeover deal for the Paisley outfit.
But it is understood that Gilmour and the rest of his ruling consortium have serious concerns about one of the group, 52-year-old Thavar Mohammed, after discovering that he was sentenced to six months in jail in 2011 after being found guilty of a fake business deal at Newcastle Crown Court.
Gilmour and his group, which includes vice-chairman George Campbell, director Bryan McAusland, ex-secretary Allan Marshall and Evelyn Purves, widow of former director Jim Purves, first put a 52 per cent stake in the club up for sale in September 2009 but have yet to find a buyer.
But they have now pulled the plug on the English group after uncovering Mohammed's past as part of their due diligence checks.
A source close to the club said: "Stewart and the rest of the guys on the selling consortium have always said they would only sell to someone who had the best interests of St Mirren at heart.
"But after doing a full background check on this English group, they discovered one of the guys involved had a fraud conviction.
"It's safe to say they will no longer be going ahead with any discussions.
"The consortium have been quite clear they will make sure they do their homework on anyone wanting to get involved with the club and that is what they have done in this case."
According to reports, the English group were ready to appoint former Liverpool and Coventry City midfielder David Thompson as manager if their bid was accepted.
It was also claimed they had a raft of experienced players lined as new signings.
Last month an Argentinian group was spotted being shown around St Mirren Park but they have now returned to South America without making an official bid.
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