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Everton have failed with their audacious approach for Argentine star Lucho Gonzalez.
A host of clubs including Real Madrid, Valencia and Manchester City also held an interest in the highly-influential midfielder.
However, Everton had hoped their bid - believed to be £11million - would secure a deal, but Porto have instead moved to secure Gonazlez's long-term future by snapping up the remaining 50 per cent of his rights.
Porto only owned half the player following his move from River Plate in 2005, which left him susceptible to approaches.
But Gonzalez is now entirely owned by Porto after they paid 6.5 million euros for the remainder of his rights.
Toffees look elsewhere
Everton are now set to renew their interest in Benfica's Manuel Fernandes - who impressed hugely whilst on loan at Goodison Park last season.
The Toffees are also said to have joined the hunt for Middlesbrough's Yakubu Aiyegbeni.
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I guess this doesn't come as a surprise
And on Fernandes it looks like he is only half-owned, but it's bad news for Everton:
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Benfica insist they are looking to hold onto Manuel Fernandes for the coming season.
Fernandes spent last season on loan in England, firstly with Portsmouth and then with Everton.
He impressed with both, but he excelled with The Toffees and now manager David Moyes is looking to strike a deal.
Benfica want to keep Fernandes and a spokesman told skysports.com that they intended to keep hold of the 21-year-old.
"The player has a deal with us and it does not enter our plans to see him exit this summer," said the spokesman.
Player happy
Benfica only own 50 per cent of the player, so it is not certain they would be able to fend off any interest - but Fernandes insists he is happy to remain at the Estadio da Luz.
"I am happy at Benfica and now I am only thinking about a good season ahead," he commented.
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