Bookmakers reported a frenzy of activity yesterday from punters betting on Southampton returning to the Premiership by 2008 following news that Paul Allen, the billionaire co-founder of Microsoft, had made an approach to buy the club.

"If an Abramovich-type figure arrived at a Championship club it would completely change the goalposts," said a Ladbrokes spokesman. "We have had inquiries for some pretty hefty sums and, were it confirmed, this would have more impact than any player transfer this summer."

According to the Forbes list of 2006, Allen is the 19th richest man in the world with a fortune of £18 billion, compared to the estimated £18.7 billion held by Chelsea's owner Roman Abramovich. Although no firm proposal has been made, a source last night confirmed associates of Allen had been in contact with Southampton. He said: "There have been discussions with an intermediary and there does appear to be interest. If this came off it would be an absolutely fantastic result for the club."

It is claimed the 54-year-old Allen is attracted to the southern region and also the family image of Saints, who are currently seventh in the Championship.

The club's largest shareholder, Michael Wilde, stood down as chairman in February because of his failure to attract outside investment. Since then, the club's chief executive, Jim Hone, has been heading the search for investment.

It is believed Allen is considering a total outlay in the region of £50 million to take control of Southampton. This would pay off existing debts, notably the loan taken out to build the St Mary's Stadium in 2001. Speculation surrounding Allen caused a significant surge in the share price yesterday, prompting the club's parent company, Southampton Leisure Holdings, to issue a statement to the Stock Exchange which confirmed a preliminary approach.

Nick Illingsworth, editor of the Southampton Ugly Inside fanzine, said: "It immediately caused a feeling of hope. The club does have huge potential and a big fan-base but it is becoming increasingly difficult to compete in the Premiership without outside investment." ... Guardian Service