Gregg is a former Everton director

Allen revealed Gregg withdrew his offer after the "Wednesdayite" group refused to sell a 10% share without conditions.

The Hillsborough board only hold 32% of the club's shares, which had been a source of concern for Gregg.

Allen said: "I would suggest the majority of fans get together and sort the minority out."

606: DEBATE Major PR disaster this for DA Member 75

Wednesday have debts of around �26m and Gregg had been in negotiations for months in a bid to take control at Hillsborough.

Allen added: "We've been talking to Paul Gregg since January. He's been looking to invest in a club and he was particularly interested in Wednesday.

"He's got connections in the area and his son's a fan. We had a lot of meetings with him and he completed due diligence but the bottom line is this....."

Allen then read a copy of the letter received from Gregg's solicitors.

It read: "Our client has unfortunately decided to withdraw from the opportunity to purchase initially the shares of the club. This decision was made reluctantly after much discussion.

We at Wednesdayite have become used to being portrayed in a negative way by those who look backwards instead of forwards Supporters' group statement

"Our client had completed satisfactorily due financial diligence but one of the crucial reasons why our client decided to withdraw was the recognition that the acquisition of only 30% of the club could be delivered with any definitive certainty.

"However we felt that control was a necessity for our client. In addition the potential blocking ability of the supporters trust who are 10% shareholders was a clear detraction from making an offer."

Allen has offered to put �500,000 of his own money into the club in exchange for Wednesdayite giving up their shares but has refused to talk to the group.

But the Wednesdayite group hit back at Allen's claims.

It said in a statement: "We at Wednesdayite have become used to being portrayed in a negative way by those who look backwards instead of forwards.

"Are we really the stumbling block to progress? Progress requires movement. We have moved - some would say a long way already - and we are willing to discuss further movement. We are not preventing progress.

"It is those who will not move from their entrenched positions who are the real stumbling block. Constant repetition of 'It's Wednesdayite's fault' may be easy and may even convince some, but at the end of the day, it is not a way to achieve progress."