DIC have pulled out (continued)

[Kaip]

Well that will go down well around here

Hahahahaha

[Lucky]

If LFC haven't taken any advice on the cultural way of handling such business dealings , before they started this process, then they're even more naive than I think they are. Exclusivity periods are commonplace in business when trying to strike such a deal. It sounds to me like our board just haven't kept DIC in the loop, and that cultural affront has caused the withdrawal and the position we now find ourselves in. I find it VERY hard to believe our board aren't still in touch with DIC in some capacity right now. Not to be would be an even worse mistake - becuase if Gillett / Hicks walk away now, how would that look? Yes, we would look foolish if we eventually signed with DIC for 80-90% of what was previously on the table, but not as foolish as having no buyer at all, in the event that Gillett pulls out now. In fact, if he's such a canny businessman he might threaten to do just that, just to drive the price down.

Why would we look foolish? It would be a smart bit of business from Moores and DIC if they were to pay for the shares at the market rate rather than an inflated price.
It would mean more money for the club and less money into shareholders pockets, exactly what Moores has been saying for ages, or do we think that Moores really wants to squeeze as much cash out of the club and into his pockets?
I agree with you though that it's almost inconceivable that they are not talking to each other and after all this effort from both sides they had a bizarre misunderstanding / falling out.
Don't care what anyone says I know we're not that incompetent!

[Kopite_Colin]

Why would we look foolish? It would be a smart bit of business from Moores and DIC if they were to pay for the shares at the market rate rather than an inflated price.
It would mean more money for the club and less money into shareholders pockets, exactly what Moores has been saying for ages, or do we think that Moores really wants to squeeze as much cash out of the club and into his pockets?
I agree with you though that it's almost inconceivable that they are not talking to each other and after all this effort from both sides they had a bizarre misunderstanding / falling out.
Don't care what anyone says I know we're not that incompetent!

There's no way existing shareholders don't want to maximise their profit. Effectively the money on the table has to split into 2 funds: 1 to buy the shares (at a premium above the existing market value) and 1 "leftovers" to pump into future development of the club. We would look foolish, if we had to go back to DIC cap in hand, and they offered us a total pot of money which is less than what they offered before. The premium rate for the shares will still have to be paid (otherwise there's no incentive for the shareholders to sell), which leaves less money in the pot overall for the club.

[Lucky]

There's no way existing shareholders don't want to maximise their profit. Effectively the money on the table has to split into 2 funds: 1 to buy the shares (at a premium above the existing market value) and 1 "leftovers" to pump into future development of the club. We would look foolish, if we had to go back to DIC cap in hand, and they offered us a total pot of money which is less than what they offered before. The premium rate for the shares will still have to be paid (otherwise there's no incentive for the shareholders to sell), which leaves less money in the pot overall for the club.

Why would DIC, Gilett or any new owner want to have their new business hamstrung by not putting money into it? If they had £xm would it not be sounder to spend less in acquiring the shares and more of that money into stadium or team. Success on and off the pitch will be guaranteed this way.
As for shareholders they don't have much choice. If there is only one potential bidder left at the table who moores agrees to sell his shares to they would be seriously foolish to hold onto minority shares with new owners thus creating a split boardroom.
It would seriously damage the "business" and devalue their shares further.
I predict if Gillet's crazy bid of £5000 per share is blown away for some reason then DIC would offer moores and shareholders around £3500-£3800 per share.
Already a sizeable profit and certainly much more than shares were trading a few months ago.
DIC would then invest the money they "saved" into the business in order to make it more succesful!

[Tee]

Sorry that I have not raed through all 2 thousand pages of this thread, but does anyone else believe the decision to drop DIC and entertain a bid from Gillette has anything to do with Parry and Moores looking to secure their own positions?

I am sure that if DIC took over we would have a new Chairman and Chief Excec. Just a thought.

[El Jefecito]

Sorry that I have not raed through all 2 thousand pages of this thread, but does anyone else believe the decision to drop DIC and entertain a bid from Gillette has anything to do with Parry and Moores looking to secure their own positions?

I am sure that if DIC took over we would have a new Chairman and Chief Excec. Just a thought.

I think its a case of Hicks and Gillett wanting it more.

[kurtangle01]

Sorry that I have not raed through all 2 thousand pages of this thread, but does anyone else believe the decision to drop DIC and entertain a bid from Gillette has anything to do with Parry and Moores looking to secure their own positions?

I am sure that if DIC took over we would have a new Chairman and Chief Excec. Just a thought.

No because both of their positions were assured under the DIC bid but not under the Gillett bid.

[Lucky]

Sorry that I have not raed through all 2 thousand pages of this thread, but does anyone else believe the decision to drop DIC and entertain a bid from Gillette has anything to do with Parry and Moores looking to secure their own positions?

I am sure that if DIC took over we would have a new Chairman and Chief Excec. Just a thought.

There was talk that under DIC, Parry would keep his job and Moores would be made a life president, or another non executive role.
gilett is also making noises about keeping them on....

[Jimthered]

From what I was reading on the echo website, Parry was the only one who would keep his job. Moores would only get a figure head role in the club. The 5 board places would all go to DIC.

It remains to be seen as to what the Gilett/Hicks deal is .

I am very concerned about Hicks to be honest. Read up on the man , he has an intresting history to say the least.

Tom Hicks (middle left), the investment banker billionaire to whom Bush and Rainwater sold the Texas Rangers, owns a vast sports and media empire and was George's biggest '98 campaign contributor. Bush had allowed him to head up a committee charged with "investing $1.7 billion of public university money in the form of investments in private companies." Unfortunately, according to R. G. Ratcliffe in a March 20, '99 investigative article written in the Houston Chronicle, questions have recently been asked because "almost a third of the $1.7 billion has been committed to funds run by Hicks' business associates or friends (and).... five funds run by major Republican political donors." These questions have remained unanswered and Hicks has been unwilling to answer questions about his activities on the public's behalf.. "In the past three years, state auditors have criticized the secretive nature of (the Hicks committee's) investment decisions and have complained about the potential for conflicts of interest for board members." Recently, Hicks has decided to take on fewer responsibilities within the public university fund and the committee has promised to be more public in its financial activities, but has declined to provide explanations about past dealings, citing contractual agreements with the parties involved. Hicks' power at the University of Texas is such that the new football and basketball coaches had to be interviewed by him prior to being offered jobs.

Hicks also lost a crap load of money in Telecom investments in the 90's. Not really a big deal as anyone who invested in Telecoms lost a crap load of money in the 90's.

Hicks Muse and investors in its Equity Fund IV were burned by a $1.2 billion plunge into telecom investments in 1999. Hicks got plenty of bad press as a result.

He also likes to get involved in running the club.

At about the same time, the Rangers were falling apart. Hicks was being skewered for his unprecedented spending spree on Alex Rodriguez ($252 million over 10 years) and other players who were supposed to, but didn't, catapult the Rangers to the World Series. By the end of 2003, after Texas had finished in last place in its division, Hicks resolved to rebuild his ailing club, shipping Rodriguez off to the New York Yankees.

Hicks also purchased a manufacturing company in China with about 1000 employees , 800 of them on a wage of about 50 cents an hour.

The above is just a small slice of what is out there to read, most of it focusing on his relationship with Bush and his cronies, and lining thier pockets with taxpayers money.

[Kopite_Colin]

Why would DIC, Gilett or any new owner want to have their new business hamstrung by not putting money into it? If they had £xm would it not be sounder to spend less in acquiring the shares and more of that money into stadium or team. Success on and off the pitch will be guaranteed this way.
As for shareholders they don't have much choice. If there is only one potential bidder left at the table who moores agrees to sell his shares to they would be seriously foolish to hold onto minority shares with new owners thus creating a split boardroom.
It would seriously damage the "business" and devalue their shares further.
I predict if Gillet's crazy bid of £5000 per share is blown away for some reason then DIC would offer moores and shareholders around £3500-£3800 per share.
Already a sizeable profit and certainly much more than shares were trading a few months ago.
DIC would then invest the money they "saved" into the business in order to make it more succesful!

Sorry mate, but in this world of share dealing, there's no way shareholders will take anything less than current price + premium for their shares. There's simply no point. The fact that a deal was agreed with DIC at £4500 means that that is the minimum price a takeover will go through at. There are others out there who are still sniffing, which also keeps the price bouyant, and wehy G& H pulling out trying to drive the price down would be a real risk for them. The business won't be "hamstrung", but G & H (or any other buyer) won't commit to a total fund larger than they need to. They would rather keep the money in their pockets for later voluntary investment for a later date if required.

[Lucky]

Sorry mate, but in this world of share dealing, there's no way shareholders will take anything less than current price + premium for their shares. There's simply no point. The fact that a deal was agreed with DIC at £4500 means that that is the minimum price a takeover will go through at. There are others out there who are still sniffing, which also keeps the price bouyant, and wehy G& H pulling out trying to drive the price down would be a real risk for them. The business won't be "hamstrung", but G & H (or any other buyer) won't commit to a total fund larger than they need to. They would rather keep the money in their pockets for later voluntary investment for a later date if required.

I agree with your last sentence, but i don't see any other investors kicking around. Especially with stadium deadlines looming...
If G&H make a formal offer which get's rejected and moores agrees to sell to DIC for a lower sum, there's no way minor shareholders can hold out for silly money...
Either way hopefully we'll find out this week.

[SouthAfricaRed]

I agree with your last sentence, but i don't see any other investors kicking around. Especially with stadium deadlines looming...
If G&H make a formal offer which get's rejected and moores agrees to sell to DIC for a lower sum, there's no way minor shareholders can hold out for silly money...
Either way hopefully we'll find out this week.

Apparently Morgan and Miskelly are getting ready to launch a Rival Bid this week

[Lucky]

Apparently Morgan and Miskelly are getting ready to launch a Rival Bid this week

Bollox!
They'll ruin everything.

[Lucky]

Really hope things get wrapped up this week like rafa's been saying.

[SouthAfricaRed]

Really hope things get wrapped up this week like rafa's been saying.

I agree. This speculation must influence the players