Arsenal fail in £12m Walcott bid
BBC Sport understands Southampton have rejected a formal £12m offer from Arsenal for striker Theo Walcott. It is understood Chelsea could be willing to pay up to £15m, but the 16-year-old has made it clear he would prefer a move to the Gunners.
Earlier, Gunners boss Arsene Wenger had let slip that a deal was almost done. When talking to journalists, he referred to new arrivals Emmanuel Abedayor and Abo Diaby, saying he had "two signings, sorry, two and a half."
Asked if he was referring to Walcott, the Arsenal manager said: "I would like to tell you."
Earlier in the week, Wenger confirmed he was an admirer of Walcott's precocious talent.
"He's a player we rate," said Wenger.
"I rate him personally and we are looking at him, yes. Ideally we would want Theo to join us straight away. But it would not be a deal-breaker if Southampton say they want him to finish the season there."
Southampton boss George Burley said he was in the dark about Walcott's future, but said he would love to hold on to the youngster.
"I don't know what will happen tomorrow," said Burley.
"I won't guarantee anything, but as far as I'm aware, nothing has changed. We're planning ahead with Theo at the club.
"He's done very well for us and we want to keep him for as long as possible. He's a fantastic talent. When you've got a talent like that there is always going to be speculation but the kid handles it well - he's experienced it for the past six months."
Southampton are reported to be interested in a deal in which Walcott would be signed by Arsenal and then immediately loaned back to them for the rest of the season. Saints chairman Rupert Lowe is known to have been at Arsenal's training ground last week, but he has said he was not there to discuss Walcott. Lowe has also said he would like to retain Walcott.
Walcott, who has a pre-contract agreement with the Saints to sign a professional contract on his 17th birthday in March, has scored five goals in 12 starts for Southampton this season.
