Dubai International to make bid for Liverpool FC

[AFII]

The future's definitely bleak with these two. No way can we sustain that level of debt and continue to be competetive. In fairness it's a relatively short term issue because things should get better when the stadium is complete in temrs of income.

It's what happens in the meantime and all trust has been broken.

I hope they walk. This isn't their club it's ours and I hope and prey that they get the message.

I'm getting angrier and angrier as I type this!

I doubt that the new stadium will make that much difference when it comes down to transfer money if G&H stays.

We will still be in big debts, probably £500m-£600m. It will cost a lot of money when G&H will start to pay off the debt and then they will probably also take some money themselves. Won't be much left to sign players for.

£30m/year interest rate, say that they pay £30m/year to decrease our debt and then some profit money to them.

We know that they don't pay for players out of their own pockets so that's out of the question.

Will be a lot of sell to buy.

[kurtangle01]

As soon as they admit they are selling, their bragaining chip looses value. I really hope this is what they are at. Denying they are selling to keep the price up. Obviously not too high up as to scare DIC away again.
I'd actually love them to engage a hostile takeover if it was possible. Initially I was devestated when DIC lost out last year, but was prepared to give the Yanks a chance.

I hope you're right, bazza, I really do. I don't see how saying they don't want to sell increases their bargaining power though?

[AFII]

It's already a hostile takeover IMO. We the fans want G&H out and will be more and more vocal in our protests.

DIC will continue to use us(the fans) as long as they have a chance to buy the club.

The next step will probably some kind of protest against G&H on the streets if they don't **** off.

[rushscored4]

A change of ownership would not necessarily play into Benítez’s hands, however, as it has been mooted that DIC would favour appointing its own man. Similarly, Rick Parry, the chief executive, may also find himself between a rock and a hard place.

Like Gillett, Parry is uncomfortable with the refinancing package being proposed, but having given his backing to the Americans over DIC last year, he may find he has little support from the consortium, which had previously stated a desire to appoint its own chief executive.

So that's why Parry changed his allegiance at the 11th hour last year and recommended Moores accept the Yanks' offer?

Perhaps I should stick to 'insider' information about the stadium but my son goes to a posh school in Altrincham and his best mate's Dad (who is a Scouser like me) is very friendly with one of the Moores family (OK, OK, I know it sounds tenuous...) His mate Tom has often sat in the Director's Box with his Dad who even got him a trial at Kirkby through his connection (Tom is a very good striker and is already 6'3" at 15 but sadly he didn't get taken on).

Anyway, according to Tom's Dad, DIC has already made a bid of £320m for the club but it hasn't been accepted. Usual disclaimer follows: I'm just passing the info on so don't shoot the messenger if it's a load of bollocks or has already been mentioned by somebody else (I'm not ****ing reading all 16 pages)!

[Chris]

It's already a hostile takeover IMO. We the fans want G&H out and will be more and more vocal in our protests.

It doesnt mean hostile in that sense.

[marcus50bucks]

So that's why Parry changed his allegiance at the 11th hour last year and recommended Moores accept the Yanks' offer?

Perhaps I should stick to 'insider' information about the stadium but my son goes to a posh school in Altrincham and his best mate's Dad (who is a Scouser like me) is very friendly with one of the Moores family (OK, OK, I know it sounds tenuous...) His mate Tom has often sat in the Director's Box with his Dad who even got him a trial at Kirkby through his connection (Tom is a very good striker and is already 6'3" at 15 but sadly he didn't get taken on).

Anyway, according to Tom's Dad, DIC has already made a bid of £320m for the club but it hasn't been accepted. Usual disclaimer follows: I'm just passing the info on so don't shoot the messenger if it's a load of bollocks or has already been mentioned by somebody else (I'm not ****ing reading all 16 pages)!

Was the offer rejected then or didn't your source say?

Stick to stadium info.

[rushscored4]

Stick to stadium info.

I will...

[JCase]

Is there really a Bank of Wachovia? Where is Wachovia?

I am guessing its near some corn field in Oakhahoma

[Jayesh87]

Tomorrows papers seem to suggest that if Gillett gives DIC his backing that Hicks would sell but that is unlikely to happen and instead he will go ahead with the re-financing of the debt.

[Bari]

I am no financial genuis but this is what I have come to understand is the case

G & H took out a short term loan to cover buying the club, thinking that they could easily renew the loan when needed, since then however there has been what is known as the global credit crunch, which means banks are less inclined to take risks

There has also been the collapse of a thing called the American sub prime market (whatever that may be ?) and all the banks are expecting to make substansial losses over it making them even more reluctant to lend money.

So far from being able to renew the loan G & H are finding the banks want a higher rate of interest to renew the initial loan, they also need to top up the loan to start work on the stadium

because of the global financial uncertainty the banks also want G & H to secure the loan on against their personal assets............ something they seem reluctant to do

they would prefer to use us (LFC) as the collateral thus burdening us with a massive ongoing burden of debt (Glazer style) this is completely against what they promised last year

hope that helps

What i'm trying to get at is ala Credit Cards and Mortgages, Balance Transfers etc. Why risk losing it all, just transfer away from RBS to another debt handler accept the higher interest, arrangement fees for the short-term, wait a year then rearrange and then short out everything else afterwards. I know this is big money but you'd a throught this was possible.

[Jayesh87]

Liverpool ponder move to buy out Hicks


Gillett considers a future without his co-owner

Americans fall out over plans for re-financing

Andy Hunter
Friday January 18, 2008
The Guardian

Liverpool's co-owner George Gillett will spend the next few days deciding whether to support a plan to buy out his partner Tom Hicks or throw his weight behind a refinancing package that would strengthen Hicks's hold on the club.

Gillett and his co-chairman Hicks have almost finalised terms on a £350m loan that would allow them to repay money borrowed for their £218.9m takeover, repay loans acquired to sign players last summer and commence work on their revised plans for a new stadium. The deal, with the Royal Bank of Scotland and US investment firm Wachovia, could be completed early next week providing the two Americans sign the terms on offer.

After a period of instability unprecedented in Liverpool's recent history, Gillett is understood to have grave misgivings over his continued involvement with Hicks, the man he brought on board to secure the takeover last February but who has proved far from the silent partner he originally envisaged. A fresh dilemma for Gillett is that Dubai International Capital, the investment arm of the Dubai government, is now prepared to provide him with the financial backing to make an offer for Hicks's 50% stake in Liverpool.

DIC lost out in the pursuit of the former chairman David Moores' majority shareholding last February when its failure to meet agreed deadlines for the takeover enabled the Americans to succeed with a late and more lucrative bid. Though it withdrew acrimoniously from negotiations DIC has maintained its interest and, having baulked at a £150m asking price for a 15% stake last October, Sheikh Mohammed bin Rashid al-Maktoum's investment company now hopes to capitalise on the disunity in the hierarchy.

DIC is willing to join forces with Gillett in an attempt to persuade Hicks to sell his interest in Liverpool for a substantial profit. A source confirmed yesterday that a deal has been drawn up in principle and will be presented to the Americans before they put their signatures to the £350m loan. "It is a very delicate situation but DIC has reignited its interest," said the source. "The terms of the offer, which will be made to Tom Hicks, have been agreed and DIC are hopeful they will be finally be able to invest in Liverpool."

Major obstacles remain in the way of DIC gaining a financial interest in Liverpool, however, not least Hicks's insistence that he has no intention of selling up. There is also doubt over Gillett's determination to attempt to oust his business partner by agreeing terms with DIC. Gillett and Hicks both have an option to purchase the other's stake in Liverpool, although the former would require backing from Dubai to achieve that goal.

Hicks, owner of the Texas Rangers baseball franchise and the Dallas Stars ice hockey team, created further problems for the American regime this week with the revelation that both he and Gillett, owner of the Montreal Canadiens ice hockey franchise, had approached Jürgen Klinsmann last November as "an insurance policy" against the possible departure of the Liverpool manager, Rafael Benítez.

What was an attempt by the Texan to draw a line under the uncertainty surrounding the future of Benítez has proved hugely embarrassing for Gillett, who is disturbed by the furious reaction among Liverpool supporters it provoked, but it is how much of the £350m loan should be placed on to the club's books that is the fundamental problem.

Both Moores, who became honorary life president of Liverpool under the terms of the takeover, and the chief executive, Rick Parry, have blocked attempts to load all of the debt on to the club amid concerns at annual interest payments of £30m. Under the terms of the loan it is anticipated half will be burdened on the club and the rest secured against Kop Holdings, Gillett and Hicks's parent company, although that still represents a U-turn on their promise to use their own funds and not to adopt the Glazers' handling of Manchester United. The Americans will still require a further £300m loan at a later date to complete work on a proposed new stadium.

Gillett could exert pressure on Hicks to sell next week by refusing to commit to the refinancing package. Should Gillett agree to the loan, and sources yesterday insisted that he remains undecided, then Hicks - the driving force behind the stadium and the biggest threat to Benítez - will be empowered in his plans to bring the development to fruition in 2011 when he can demand a higher price for his stake.

http://football.guardian.co.uk/News_...242805,00.html

[CharlieMansonsSquint]

Tomorrows papers seem to suggest that if Gillett gives DIC his backing that Hicks would sell but that is unlikely to happen and instead he will go ahead with the re-financing of the debt.

It changes by the minute though.

[Jayesh87]

Do the right thing Gillett!!!! Get rid of your idiot of a partner.

[Jayesh87]

It changes by the minute though.

Read the article i just posted

[Maxiedge]

Read the article i just posted

Thanks Milkman. I think the next couple of weeks will be make or break for Liverpool Football Club.