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Ferguson highlights Everton's potential as Ancelotti appointment looms

Interim manager Duncan Ferguson was "devastated" by Everton's penalty shootout defeat to Leicester City in the Carabao Cup, but he believes there is potential to build on at Goodison Park.

Amid reports former Real Madrid and Bayern Munich coach Carlo Ancelotti is set to take charge, Everton fought back from two goals down against high-flying Leicester on Wednesday, only to lose 4-2 on spot-kicks.

James Maddison and Jonny Evans put Brendan Rodgers' side in control by half-time, but Tom Davies' volley paved the way for Leighton Baines to force penalties with a stunning stoppage-time equaliser.