Hong Kong businessman Carson Yeung is poised to buy a major stake in Birmingham City but will stop short of a complete takeover of the Midlands club.

Yeung is set to purchase around half of the 78 per cent of club shares owned by current owners David Sullivan and brothers David and Ralph Gold. He has come to this decision after holding talks with Sullivan and the Golds over the past few days.

It was originally thought that Yeung would invest around £50 million and end Sullivan and the Golds' 14 years in charge at St Andrew's.

Yeung would then have a considerable say in the running of City - but not total control - and would become the largest single share-holder.

As it is, Sullivan and the Golds will maintain a major role although the door would remain open for Yeung, who will pay between £15 to £20m at this juncture, to obtain a controlling interest in the future.

Steve Bruce, the Birmingham manager, is continuing with his transfer plans amid the speculation about a takeover and is poised to sign midfielder Olivier Kapo from Juventus in a £2m deal. Kapo, a France international, is holding talks with talks with Bruce after the two clubs agreed a fee.

City are also close to confirming Scotland striker Garry O'Connor's £2.6m move from Lokomotiv Moscow.