A bidding war could break out for the owners of the Oxford greyhound and speedway stadium in Sandy Lane West.

Gaming group Wembley, which owns Oxford and five other UK dog tracks and has operations in the US, received a second takeover bid from BLB Investors.

The US-based consortium is offering £287m. Wembley, which sold the national football stadium in 1999, is already the subject of a £270m offer from Las Vegas casino giant MGM Mirage.

The BLB Investors consortium is 50 per cent backed by property investment firm Starwood Capital, while Kerzner - a developer of resorts and casinos - jointly owns the rest with Waterford, a gaming and leisure operator.

In response to BLB, MGM Mirage raised the possibility of a bidding war.

It said it was considering its options, including the possibility of an increased offer for Wembley.

The interest comes ahead of the Government's proposed deregulation of the casino industry, which could allow Wembley's tracks to be turned into gaming emporiums.

BLB already owns eight per cent of Wembley, but has an agreement with fund manager Active Value to take its stake up to 22 per cent.

Wembley has extensive US operations in Colorado and Rhode Island.