The Danish forward had been invited by Alex McLeish to train with the first team squad and prove to the Blues boss that he was worthy of a contract at St Andrews. "But it was my intention to let him train with us for a few weeks, I think he's a bit short of fitness, then we would have seen what had happened. "Once the takeover had gone through successfully, or even if it hadn't, Peter might have showed up so well that I could have persuaded the club to have taken him on.
However, Newcastle United have stolen a march on Blues and offerred Lovenkrands, a player they released at the end of last season, a new contract at St James Park.
"Peter was a player we got to look at but because of our financial situation I couldn't offer him a contract, we're spent in terms of the budget," McLeish has told The Birmingham Mail
"But he had an offer from Newcastle on the table."