Investment Delay?

[friedk]

This is what scares me, if the board are looking to sell to the highest bidder then the best interests of the club are not being served.

All it means is that LFC is for sale, just like the scum.

I don't know the facts, but from what I have read, the only thing going for the american deal is that they have placed more money on the table, which makes me uncomfortable.

[tomasjj]

It could be negotiating tactics, but then it is a fairly high risk game Parry and the board are playing. If there is any truth in this at all though.

[bazza76]

Greedy Granada?
They own 10 % compared to Moores 51 and should pipe down and fall into line.

Granada would get approx £1.6m extra if they accpeted to Gillette deal.

[Taffy]

Good post Taffy.

This twist in the saga is still frustrating though after the length of time it's been dragging on. I'd like to see DIC tie this deal up as soon as they can so we can move on and start focusing more on the football and winning the Premiership.

[Red Chilli]

The thing is, it's purely Moore's decision who he sells his controlling shares to.
If he wants to retain some shares, then it makes it more complicated.
The other potential complication is that DIC might want to buy out the whole stock of shares, as I'm led to believe they do. If they want all the shares or no deal then it becomes a problem.

[Morph]

i don't think this is a problem as such, we are just looking at all the possible avenues of investment. I don't think the Gillette business will come to anything, but i'm sure we're at least obliged to consider it if he's offering more cash than dic. Moore's has to do right by his fellow shareholders, most of whom like Granada no doubt will want the extra cash.

[AFII]

Future of Reds in extra time

Jan 31 2007

Liverpool Echo

JASON ROBERTS

THE battle for control of Liverpool FC is back in the balance after a board meeting in London.

Reds officials met before last night’s match at West Ham to vote on rival offers from Dubai International Capital and American businessman George Gillett.

But chairman David Moores, who must make the ultimate decision, asked for more time to consider. The move surprised DIC, who have completed due diligence and want to make a formal bid for Moores’s 51.6% majority shareholding early next week.

But sources at Anfield say the delay is because the Reds chairman is anxious to make the best decision for the club.

It is understood that the Dubai deal firmly remains the favoured option, with so much progress having already been made on the deal.

David Moores, however, must consider other options when they are presented to shareholders.

Gillett’s offer is £5,000 per share, £500 more than DIC’s proposal, which means Moores would net £8m more from the American’s offer – and minor shareholders are believed to be pressurising the chairman into considering the better financial offer.

Earlier this week, Dubai International’s executive chairman Sameer al-Ansari said: “I understand he (Gillett) offered £5,000 a share while we offered £4,500 a share. But we are very confident the club will not consider the other offer.”

Rebuilding work on the new stadium is due to start in March, so a decision is imminent.

CLICKY - The Echo

[steveheighwayrobbery]

Your have to keep in mind that it is the share holders who ae making waves here. The directors have a overriding duty only to act in the best interests of the company. If they do not exersise their duty correctly, they can be held to be personally liable for any losses made to the company. At the same time they need to keep the shareholders happy as it is they who have made the investment in the company. Morres has the power to remove all the directors so they will not have too much say on the issue if he cannot he persuaded by the gillet bid. Saying that DIC would need 75% of the shares to convert the company form a plc and that is the issue. The shareholders smell carrots and they want thier share. Of course there is nothing stopping Moores selling now leaving it to DIC to deal with the minority shareholders later. This may occur but as directors Moores and co are duty bound to consider rival offers to make sure that they are making the right decision. So it's all about politics with a small p.

[bazza76]

Your have to keep in mind that it is the share holders who ae making waves here. The directors have a overriding duty only to act in the best interests of the company. If they do not exersise their duty correctly, they can be held to be personally liable for any losses made to the company. At the same time they need to keep the shareholders happy as it is they who have made the investment in the company. Morres has the power to remove all the directors so they will not have too much say on the issue if he cannot he persuaded by the gillet bid. Saying that DIC would need 75% of the shares to convert the company form a plc and that is the issue. The shareholders smell carrots and they want thier share. Of course there is nothing stopping Moores selling now leaving it to DIC to deal with the minority shareholders later. This may occur but as directors Moores and co are duty bound to consider rival offers to make sure that they are making the right decision. So it's all about politics with a small p.

nice little summary there steve.
Moores has made it clear, as far as i can see anyway, that money isnt his motivation, he wants to hand over the club to the right owners who can benefit the club the most. Thats important to him, more so than the extra few million IMO. He has a comfortable lifestyle anyway and genuinely loves the club, after all, he is a supporter just like any of us.

[steveheighwayrobbery]

nice little summary there steve.
Moores has made it clear, as far as i can see anyway, that money isnt his motivation, he wants to hand over the club to the right owners who can benefit the club the most. Thats important to him, more so than the extra few million IMO. He has a comfortable lifestyle anyway and genuinely loves the club, after all, he is a supporter just like any of us.

Cheers mate, I was just reading in the Echo that Gillette has actually finished his due dilligence and has agreed to personally finaance the new stadium and future transfers. That clearly would put the cat amongst the birds if ,as widly expected DIC will fund it through debt. Nothing wrong with the latter but to the lesser finacially minded - one bid (the american chap) would look better than the other.

[Morph]

Cheers mate, I was just reading in the Echo that Gillette has actually finished his due dilligence and has agreed to personally finaance the new stadium and future transfers. That clearly would put the cat amongst the birds if ,as widly expected DIC will fund it through debt. Nothing wrong with the latter but to the lesser finacially minded - one bid (the american chap) would look better than the other.

Thing is we all know the cash DIC have behind them, we don't know what this Gillette fella is all about. Also i'm sure I read somewhere that he declared himself bankrupt in the earlys 80's or 90's, hope we don't leave ourselves open to troubles in the future.

[Mumsafan]

I'd feel a lot safer financially with the DIC lot

[Jayesh87]

LFC: we're taking US buy-out bid seriously

Jan 31 2007

EXCLUSIVE by David Prentice, Liverpool Echo

LIVERPOOL FC today confirmed that American businessman George Gillett is a serious rival to Dubai International Capital's bid for control of the club.

The US sports tycoon has astonished Anfield officials by completing his due diligence procedure in three days.

By confirming that a shared stadium with Everton has never been on his agenda, by agreeing to personally underwrite the new stadium funding, and by making a firm commitment to investing in future transfers, he has now moved alongside DIC as a realistic future owner.

Up until 48 hours ago, chairman David Moores was focused solely on a takeover by DIC, the investment arm of the Makhtoum family.

But he has come under increasing pressure from minor shareholders to think about the American's proposals, which are worth £500 a share more than DIC's.

Moores would net £8m more from the American's offer, but sources at Anfield say the Reds chairman only wants to make the best decision for the club.

It is the speed and decisive nature of the American's proposals which have caused him to think again.

DIC took more than a month to complete their due diligence procedure, and even now no formal offer has been made.

Reds officials were hoping to vote on the DIC proposals at a board meeting in London last night before the match at West Ham, but the documentation was still not in place.

It was this latest hitch which convinced Moores to reconsider.

Building work on the new stadium is due to start in March, so a decision is imminent.

Moores is carefully considering both offers, but is expected to make a decision by the end of the week.


http://icliverpool.icnetwork.co.uk/0...name_page.html

[tomasjj]

just putting pressure on DIC to act, it seems

[Armchairkopite]

The future of the club will be decided in the next couple of days so.....