Dubai International to make bid for Liverpool FC

[Jimthered]

I would assume it is a bigger difference seperating the two... With their recent evaluation of 1 bill. I would say somewhere closer to 500 mill or so...

Your not wrong, G&H (H especially it would seem) are basing any sale price on the potential value of the club once the stadium is built .

I wouldnt pay it , and I doubt DIC will either. These are smart people, they wont pay over the odds despite the fact that Al Ansari is a big fan. It isnt his money after all.

The purpose of DIC is to create a return for its shareholder, Dubai Holding and its ultimate shareholders, the Ruling Family of the Emirate of Dubai. It is not as commonly thought an investment arm of the Government of Dubai.

In other words they wont pay a **** load of cash for something that wont make a substantial return, and where will the "return" come from ? From the profits the club makes.

[CharlieMansonsSquint]

I think Hicks wants £500M but is asking for £1Bn.

Surely you mean a billion dollars?

[Rashid]

Change of owners would leave Reds in the black

KAREN GILES January 21 2008

Barely 12 months after stepping on to the Anfield pitch, draped in club colours and stressing their allegiance, Liverpool owners George Gillett and Tom Hicks look set to trade in their scarves for a quick profit. Disconcerted by the hostility of supporters towards their involvement and no longer convinced by the club's investment potential, the American pair are weighing up an alleged £400m offer from Dubai International Capital.

To the immense relief of manager Rafael Benitez who has spent the best part of this season at loggerheads with the club's owners, Gillett and Hicks will almost certainly decide to jump ship. While DIC, the investment arm of the Dubai government, have no intention of paying over the odds for the club, their offer is said to allow each American the chance to walk away from a difficult situation with a face-saving profit.

It would be the best scenario for all concerned. Despite the initial euphoria after Gillett and Hicks tied the knot last February, the relationship between the club and its billionaire owners has always been strained. No money was made available to Benitez in the transfer window and last week Hicks admitted to sounding out Jurgen Klinsmann as a possible successor to the Spaniard.

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The Americans, who have not invested a single dollar of their own personal fortune in the club, have found running a football club more difficult and less profitable than they envisaged. The locals have proved hostile, the manager an awkward customer and as for the £350m debt incurred in taking over the club last February, it needs refinancing quickly.

In an attempt to generate additional funds for the development of the new stadium, Gillett and Hicks are now seeking to transfer the debt for which they are personally responsible on to the club. But any such package will involve a substantial arrangement fee believed to be in the region of £40m and incur annual interest of £30m.

For a club that has always taken great pride in its sound financial footing, the figures make unpleasant reading. Instead of the Americans bringing stability and prosperity, Liverpool could soon be burdened with debt and unable to finance a serious tilt at the title let alone the building of the new stadium.

As far as Liverpool supporters are concerned, the sooner Gillett and Hicks sell up and ship out the better. Before Christmas, there was a degree of sympathy for the Americans as the churlish Benitez threw his toys out of the pram after being told there was no more money to spend. Now the tables have turned.

Thanks to that ill-conceived conversation with Klinsmann, Benitez is now flavour of the month while Hicks and Gillett are considered the enemy. For all the club's obvious problems on the pitch - they trail Manchester United by 15 points - Liverpool fans are now backing Benitez to the hilt.

Some would argue they have no choice. The squad that Benitez has spent a fortune piecing together has a distinctly Spanish flavour. To lose the manager in a bloody coup would be to jeopardise everything Benitez has put in place over the last three years. Fernando Torres, Liverpool's club record signing, could easily follow his compatriot out of the door.

The concept of loyalty is something Gillett and Hicks have struggled to grasp during their brief and uncomfortable association with English football. It came as a shock to learn how influential fans can be. As for the passion, in the stands and on the streets, it is an alien concept because theirs was never about emotional involvement. It was purely about money.

For the visit of Aston Villa this evening, the Kop is planning a demonstration. The timing is unfortunate because since Randy Lerner took charge of Liverpool's opponents, Villa have given the impression they are a club going forward, slowly but with purpose. While Benitez has been hamstrung by American intervention, Martin O'Neill has been left to get on with the job.

It's a bit like the Glaser family at Old Trafford, where Sir Alex Ferguson calls all the shots, regardless of American influence in the boardroom. How former Liverpool chairman David Moores must regret doing business with Gillett and Hicks. Given the stalling of the stadium project and the shabby treatment of Benitez, it was the wrong choice.

For Liverpool's sake, let's hope those responsible for the current mess make the right one this week and close the door on their way out. If nothing else Sheikh Mohammed Al Maktoum, whose estimated £7bn fortune helps bankroll DIC, knows a thing or two about sport. And Benitez will be left in peace.

© All rights reserved. Reproduction in whole or in part without permission is prohibited.

[Darkon]

So where did Bascombe get the £350m figure from?

He also said it was signed and sealed.

where did he state that it was signed and sealed? He would be the only one to do so...

[baz87]

The £1bn valuation would include the £300m (more than likely will be more) for the stadium plus £50m or so thats already gone into the club as working capital and then ~£20m net spend this season. Basically if Hicks values us at £1bn then the amount he values the clubs shares at would be in the region of £630m. Firstly Hicks knows that the £1bn valuation is totally unrealistic even when the ground is complete and secondly the ground isn't built so you can't value it as if it were.

I'd imagine that Hicks would be willing to accept something in the region of £450m but im not sure DIC would go that far. Hopefully either Hicks backs down or Gillett makes a stand.

[sonsofthedesert]

where did he state that it was signed and sealed? He would be the only one to do so...

He said Dic WILL buy LFC. He left no doubt.

[tomasjj]

I reckon the 1bn valuation was made when there was talk of a 15 percent share of the club.
Naturally, the price to buy a larger quantity is proportionally lower.
So, in my eyes, the 1bn valuation is even more far fetched this time than last time.

[Darkon]

He said Dic WILL buy LFC. He left no doubt.

Hope he is correct then, he usually have good information...

[kurtangle01]

Where's this from then?

Change of owners would leave Reds in the black

KAREN GILES January 21 2008

Barely 12 months after stepping on to the Anfield pitch, draped in club colours and stressing their allegiance, Liverpool owners George Gillett and Tom Hicks look set to trade in their scarves for a quick profit. Disconcerted by the hostility of supporters towards their involvement and no longer convinced by the club's investment potential, the American pair are weighing up an alleged £400m offer from Dubai International Capital.

To the immense relief of manager Rafael Benitez who has spent the best part of this season at loggerheads with the club's owners, Gillett and Hicks will almost certainly decide to jump ship. While DIC, the investment arm of the Dubai government, have no intention of paying over the odds for the club, their offer is said to allow each American the chance to walk away from a difficult situation with a face-saving profit.

It would be the best scenario for all concerned. Despite the initial euphoria after Gillett and Hicks tied the knot last February, the relationship between the club and its billionaire owners has always been strained. No money was made available to Benitez in the transfer window and last week Hicks admitted to sounding out Jurgen Klinsmann as a possible successor to the Spaniard.

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The Americans, who have not invested a single dollar of their own personal fortune in the club, have found running a football club more difficult and less profitable than they envisaged. The locals have proved hostile, the manager an awkward customer and as for the £350m debt incurred in taking over the club last February, it needs refinancing quickly.

In an attempt to generate additional funds for the development of the new stadium, Gillett and Hicks are now seeking to transfer the debt for which they are personally responsible on to the club. But any such package will involve a substantial arrangement fee believed to be in the region of £40m and incur annual interest of £30m.

For a club that has always taken great pride in its sound financial footing, the figures make unpleasant reading. Instead of the Americans bringing stability and prosperity, Liverpool could soon be burdened with debt and unable to finance a serious tilt at the title let alone the building of the new stadium.

As far as Liverpool supporters are concerned, the sooner Gillett and Hicks sell up and ship out the better. Before Christmas, there was a degree of sympathy for the Americans as the churlish Benitez threw his toys out of the pram after being told there was no more money to spend. Now the tables have turned.

Thanks to that ill-conceived conversation with Klinsmann, Benitez is now flavour of the month while Hicks and Gillett are considered the enemy. For all the club's obvious problems on the pitch - they trail Manchester United by 15 points - Liverpool fans are now backing Benitez to the hilt.

Some would argue they have no choice. The squad that Benitez has spent a fortune piecing together has a distinctly Spanish flavour. To lose the manager in a bloody coup would be to jeopardise everything Benitez has put in place over the last three years. Fernando Torres, Liverpool's club record signing, could easily follow his compatriot out of the door.

The concept of loyalty is something Gillett and Hicks have struggled to grasp during their brief and uncomfortable association with English football. It came as a shock to learn how influential fans can be. As for the passion, in the stands and on the streets, it is an alien concept because theirs was never about emotional involvement. It was purely about money.

For the visit of Aston Villa this evening, the Kop is planning a demonstration. The timing is unfortunate because since Randy Lerner took charge of Liverpool's opponents, Villa have given the impression they are a club going forward, slowly but with purpose. While Benitez has been hamstrung by American intervention, Martin O'Neill has been left to get on with the job.

It's a bit like the Glaser family at Old Trafford, where Sir Alex Ferguson calls all the shots, regardless of American influence in the boardroom. How former Liverpool chairman David Moores must regret doing business with Gillett and Hicks. Given the stalling of the stadium project and the shabby treatment of Benitez, it was the wrong choice.

For Liverpool's sake, let's hope those responsible for the current mess make the right one this week and close the door on their way out. If nothing else Sheikh Mohammed Al Maktoum, whose estimated £7bn fortune helps bankroll DIC, knows a thing or two about sport. And Benitez will be left in peace.

© All rights reserved. Reproduction in whole or in part without permission is prohibited.

[Jimthered]

KAREN GILES January 21 2008

While DIC, the investment arm of the Dubai government

The purpose of DIC is to create a return for its shareholder, Dubai Holding and its ultimate shareholders, the Ruling Family of the Emirate of Dubai. It is not as commonly thought an investment arm of the Government of Dubai.

You see why we dont trust journalists

[sonsofthedesert]

Liverpool will not be sold to Dubai group, insists Hicks
By Ian Herbert and Nick Harris
Published: 21 January 2008
The Arab investment group which has long had Liverpool in its sights was last night losing its race to take over the club from Tom Hicks and George Gillett before the Americans refinance the £350m debt they incurred buying it.

Contrary to reports at the weekend, Dubai International Capital has not made a formal offer for the club and a senior source said yesterday that it is now 90 per cent certain that the Americans will refinance the debt, drastically reducing the chances that DIC will have any interest in buying them out. DIC is understood to have proposed a sum of around £300m to Hicks and Gillett, but that has been rejected and there is increasing frustration in Dubai over Hicks' increasingly outlandish demands. He is understood to have brought demands unrelated to Anfield into the equation and, although DIC will seek discussions this week with Royal Bank of Scotland, which, with the US bank, Wachovia, is refinancing the Americans' loan, the new debt package is likely to go ahead within the next few days.

"[DIC] are getting exasperated," said the source. "They want to be involved, they want to put money into the club but they are not going to line the pockets of the [current] owners. They are not desperate and they don't see Liverpool as a trophy asset." Sources in Dubai also categorically denied any formal offer had been made to the Americans yesterday.

Last night, Hicks issued a statement insisting he had no intention of accepting an offer for his stake in the club. "I have not received any offer to purchase the club from the DIC or anyone else, much less accepted any such offer," he said.

"Nor do I have any intention of doing so. Whoever is behind this false report, the facts are that I and my family have always been, and remain, fully committed to co-owning the club; that no one in my family has ever indicated any intention or desire to sell our stake in the club; and that we expect and intend to be co-owners of the club, and to actively and enthusiastically support the club's manager, players and fans for many years to come."

One rumour still circulating is that DIC, the investment arm of the Dubai government, has found a way of meeting Hicks and Gillett's demands while not exceeding its own desired outlay. One major football financier suggested yesterday that DIC representatives would be in Liverpool this week to conclude that deal, which would include Liverpool's debt being taken on by the Dubai state through the issuing of sovereign bonds.

But sources in Liverpool categorically deny that any such deal is on the cards. Instead, a £350m refinancing arrangement – covering the £220m cost incurred in the Americans' takeover last year plus investment in the squad, interest payments and money needed to start work on Liverpool's new stadium – is now almost certain to be concluded, making DIC likely to "walk away". That is because DIC wants to conclude its own refinancing arrangements rather than take on the increased debt and because the resolution of the debt issue would give Hicks increased security at Liverpool, allowing him to sit back and see how the club develops.

DIC, the investment vehicle controlled by Sheikh Mohammed bin Rashid al-Maktoum, one of the world's richest men, has been consistently linked with Liverpool in recent months. It came close to buying the club a year ago and, though negotiations broke down, Hicks and Gillett's desire to put the new debt directly on to Liverpool's books, guaranteed against club assets rather than their own, makes DIC a far more attractive proposition to a club which does not want to be loaded up with debt. The uncertainty over refinancing seemed to have created an opportunity for DIC and it has been in daily contact with Anfield in recent weeks.

Persuading Gillett to sell might be one possibility, though it seems that DIC is not interested in his share alone and the best hope might have been that, if Gillett capitulated, then so would Hicks. But Gillett seems to have been persuaded against that. "[DIC] would prefer to have the [whole] club," said the source. The failure to conclude a deal will be a source of dismay to Liverpool, where the absence of any cash investment by the Americans has created a schism with the board which is trying to run the club on a day-to-day basis.

Though it is thought the debt may be set against Hicks and Gillett's own corporate structures there has been a growing schism between the board and the owners who, when they took over, said theirs would not be a "Glazer-style" takeover, with the club potentially imperilled by debt set against its assets.

Link

[Darkon]

the optimism from yesterday seems to have reverted in to pessimism today... Hope DIC are still in it, and that they have found a way to buy them out - but i am not getting my hopes up atm...

Still waiting for something official on this matter - and looking forward to this whole sage ending!

[Skullflower]

Link

i literally hope hicks drops dead this week , the fat, burgered up, new world order cunt. moores is a ****ing divvy.

[sonsofthedesert]

Telegraph (Rashid's source):

Hicks comes out fighting for hold on Liverpool
By David Bond
Last Updated: 12:27am GMT 21/01/2008


Have your say Read comments

A new bid for Liverpool from Dubai International Capital was hanging in the balance last night after the club's co-owner, Tom Hicks, blocked talks between the investment company and his bankers, the Royal Bank of Scotland.

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A crucial meeting was due to be held today between senior executives from Dubai and RBS, who loaned Hicks and his partner, George Gillett Jr, the money last year to complete their £220 million purchase of Liverpool and are currently trying to clinch a £350m refinancing deal.


I'm here to stay: Anfield co-owner Tom Hicks in Liverpool cap
The talks with RBS are a prelude to a formal offer for the club from DIC, the investment arm of Sheikh Mohammed bin Rashid Al Maktoum, who missed out in the battle to buy Liverpool last year.

But Hicks has told RBS they cannot open any dialogue with DIC until after the refinancing is completed. DIC in turn have made it clear to Hicks that if he does press ahead with the refinancing then they are prepared to walk away.

With Liverpool already in turmoil over the refinancing and the breakdown of Hicks's relationship with manager Rafa Benitez, the extraordinary game of brinkmanship risks plunging the club into crisis. Despite that threat, the refinancing package, which also involves American bank Wachovia looks like being sealed and announced in the next few days.

Last night Hicks issued another defiant statement, denying reports that he and Gillett wanted to sell the club. Hicks said: "I have not received any offer to purchase the club from the DIC or anyone else, much less accepted any such offer. Nor do I have any intention of doing so.

advertisement"I and my family have always been, and remain, fully committed to co-owning the club; that no one in my family has ever indicated any intention or desire to sell our stake in the club; and that we expect and intend to be co-owners of the club, and to actively and enthusiastically support the club's manager, players and fans for many years to come."

That pledge is only likely to inflame tensions between the owners and the fans, who are planning to protest against the regime at tonight's Premier League game against Aston Villa at Anfield.

With the relationship between Hicks and Gillett near breaking point, DIC's initial strategy was to go into partnership with Gillett and try to force Hicks to sell his 50 per cent stake in the club.

However, late last week DIC made direct contact with Hicks, telling him they were ready to make an offer to buy out both American businessmen.

It is thought DIC have drawn up a provisional offer of £350m, which includes Liverpool's debt. City sources insist DIC will only pay a realistic commercial price for the club, adding that reports of a £500m bid are wide of the mark.

DIC have also told Hicks and Gillett that any offer made after the refinancing will reduce the £80m profit the pair could stand to make from selling up just a year after their takeover.

link

[Jimthered]

Link

That is because DIC wants to conclude its own refinancing arrangements

Makes sense , they own a chunk of HSBC .

You could hope that HSBC are calling up RBS and saying "turns these ****ers down for the loan, we'll make it worth your time "

Totally illegal of course but...