The takeover deal is NOT dead.

American-based businessman Nick Merry has not given up in his bid to buy Oxford United from owner Firoz Kassam and talks have been continuing this week.

Negotiations were understood to be very delicately balanced last night.

Merry has former U's boss Jim Smith in tow, and the news that the Bald Eagle had lined up quality players to come in has only intensified the pressure on Kassam, with the club in its worst position since it was admitted to the Football League in 1962.

It was thought that the two parties were very close to a financial agreement before Kassam appeared to scupper the takeover last Friday by announcing that he was going to remain as the owner and non-executive chairman, and was bringing in former directors Bill Smith and Brendon Cross as a new executive management.

Supporters, who have seen the team slide down the table since Christmas have demonstrated their dismay and anger at the move, writing in large numbers to the Oxford Mail and inundating local radio phone-ins with their calls for Kassam to go.

The situation is critical with time running out.

Merry and his consortium desperately want to have enough games to be able to turn the club around and get the team safe from releg- ation.

Merry, a former Oxford United youth team player, would not comment last night, other than to say that he was "still diligently pursuing it".

Meanwhile, large-scale demonstrations are being planned by fans against Kassam at tomorrow night's home game against Bristol Rovers.