Alisher Usmanov increases his stake in Arsenal

The battle for Arsenal looks set to intensify after the Uzbek billionaire, Alisher Usmanov, went on a new share buying spree yesterday, snapping up more than three per cent of the club in a series of deals which could be worth as much as £20 million.An official announcement by Usmanov's investment company, Red and White Holdings, has confirmed they have increased their shareholding in Arsenal to 21 per cent to become the second largest shareholder at the club. Usmanov is now the second largest shareholder in the club and the move is the strongest indication yet that he is determined to launch a full takeover bid for the north London team.

The vast bulk of the shares sold to him yesterday came from investment company Lansdowne Partners, who previously held around three per cent. It is believed Usmanov may have paid as much as £10,000 per share for their stake – way above the market price of £8,000.

At the same time, he secured another 0.5 per cent from smaller shareholders for around £2.6 million.

Usmanov, one of Russia's richest men, first emerged as a potential bidder for Arsenal when he bought 14.65 per cent from former vice chairman David Dein for £75 million at the end of August.

Within days of installing Dein as chairman of Red and White and charging him with the task of buying up more shares, another 271 were snapped up by Usmanov for about £2 million, taking his holding to just below 15 per cent.

For the time being, however, any takeover approach from either Usmanov or the American sports tycoon Stan Kroenke, who owns 12 per cent, will be blocked by shareholders on the Arsenal board, who have signed a 'lockdown' agreement preventing them from selling their 44 per cent holding in the club until at least next April.

Danny Fiszman, who is the biggest shareholder in the club with 24 per cent, has told supporters he has no intention of selling out.

On Monday, the club will reveal their latest financial results which will show the move to the Emirates Stadium has helped close the financial gap between them and the country's richest club, Manchester United.