DIC latest - the largely wild speculation thread

[baz87]

Slightly more positive news in tomorrows Observer (Guardian).

Hicks' sell-off move delays Dubai takeover


Duncan Castles
Sunday March 2, 2008
The Observer


Dubai International Capital's proposed takeover of Liverpool is being delayed by the attempts of one of the club's American owners to sell off a percentage of his sport businesses.
Tom Hicks is seeking an off-market placement of existing shares in Hicks Sports Group, which includes investments in Liverpool, the Texas Rangers baseball team and the Dallas Stars ice hockey franchise. Investment bankers JP Morgan have been advising on the 144A listing, which was first attempted in January but failed because of challenging financial market conditions. JP Morgan representatives are understood to have visited Liverpool in the last fortnight to work on the placement.

Hicks' current 50 per cent share of Liverpool is thought to be fundamental to the exercise. DIC's interest has helped the football club's value to rise during a period in which American companies with sporting assets have declined sharply in worth. While DIC would prefer to buy Liverpool in full, the Arabian investment group is currently concentrating its efforts on purchasing George Gillett's half share and establishing an agreement with Hicks that would allow it full control of Liverpool's day-to-day operations. Hicks has engaged in talks with DIC over a proposed management structure after the purchase.
Though it has been suggested that Hicks is attempting to raise funds to buy out Gillett and take total control of Liverpool, such a move would cost around £300million (£151m) in equity and loan guarantees. Hicks is not thought to have the resources to cover such a transaction, while his moves to place shares in Hicks Sport Group would effectively reduce his stake in Liverpool, making him a seller rather than a buyer.

http://football.guardian.co.uk/News_Story/0,,2261442,00.html

[El Jefecito]

Explaining how banks have been lending money to people forever who have a high chance of defaulting (and indeed continue to do so).

Point of linking it was to educate the poster on banking norms.




But this loan doesn't have no chance of being paid. However I would say it was risky; any financing of a football club where some level of success is assumed is risky. A bad ref's decision can turn a season no matter how good the players or manager. At the end of the day banks make money. If a loan is high risk, as long as it has collateral behind it, they couldn't give a monkeys how they make their money from it.

The fact remains is if you lend somebody an amount of money they can only just repay it doesn't really matter whether the person borrowing it is a "sub prime" borrrower borrowing a few thousand or somebody worth a million borrowing a billion, it's still a risky loan.

That was my point.

[Sarb]

That was my point.

But made in a crass way, twice?

[El Jefecito]

But made in a crass way, twice?

So don't talk bollox and take the piss out of fred then. You did this to yourself

Can you not see the irony?

[kopdan]

Was talking about the takeover situation, not the league.

I actualy think thats a cop out answer. Rafa's issue was that the board wouldnt discuss transfers until January. He was told off so Rafa kicked off. That had nothing to do with the takeover. Rafa probably knows next to nothing how much money they have or what their refinancing deals are. Why would he, he is but a football manager.

So no, I dont think Rafa should be praised for outing the owners as I dont think he has.

He moaned about lack of transfer activity on their part.

Yet he got Skrtel and Mascher and not for peanuts

[Lecter]

I actualy think thats a cop out answer. Rafa's issue was that the board wouldnt discuss transfers until January. He was told off so Rafa kicked off. That had nothing to do with the takeover. Rafa probably knows next to nothing how much money they have or what their refinancing deals are. Why would he, he is but a football manager.

So no, I dont think Rafa should be praised for outing the owners as I dont think he has.

He moaned about lack of transfer activity on their part.

Yet he got Skrtel and Mascher and not for peanuts

He also sold Momo for £9 million which would be offset against those purchases

[kopdan]

fair enough

I still dont think Rafa outed the owners though, well at least not intentionally

[AFII]

fair enough

I still dont think Rafa outed the owners though, well at least not intentionally

Rafa is very cleaver. He knows how to use the media to get what he want.

[kopdan]

yes, i agree.

He certainly moved quickly to get the fans on his side.

:smirk:

[carlton]

Slightly more positive news in tomorrows Observer (Guardian).

Quote:
Hicks' sell-off move delays Dubai takeover


Duncan Castles
Sunday March 2, 2008
The Observer


Dubai International Capital's proposed takeover of Liverpool is being delayed by the attempts of one of the club's American owners to sell off a percentage of his sport businesses.
Tom Hicks is seeking an off-market placement of existing shares in Hicks Sports Group, which includes investments in Liverpool, the Texas Rangers baseball team and the Dallas Stars ice hockey franchise. Investment bankers JP Morgan have been advising on the 144A listing, which was first attempted in January but failed because of challenging financial market conditions. JP Morgan representatives are understood to have visited Liverpool in the last fortnight to work on the placement.

Hicks' current 50 per cent share of Liverpool is thought to be fundamental to the exercise. DIC's interest has helped the football club's value to rise during a period in which American companies with sporting assets have declined sharply in worth. While DIC would prefer to buy Liverpool in full, the Arabian investment group is currently concentrating its efforts on purchasing George Gillett's half share and establishing an agreement with Hicks that would allow it full control of Liverpool's day-to-day operations. Hicks has engaged in talks with DIC over a proposed management structure after the purchase.
Though it has been suggested that Hicks is attempting to raise funds to buy out Gillett and take total control of Liverpool, such a move would cost around £300million (£151m) in equity and loan guarantees. Hicks is not thought to have the resources to cover such a transaction, while his moves to place shares in Hicks Sport Group would effectively reduce his stake in Liverpool, making him a seller rather than a buyer.

http://football.guardian.co.uk/News_...261442,00.html

what is an offer-market placement? and can anyone buy these shares? If so maybe DIC could buy them and increase their leverage with Hicks?

[Rashid]

fair enough

I still dont think Rafa outed the owners though, well at least not intentionally

Rafa was sulking and ended up outing them. Rafa deserves the sack nearly as much as we deserve new owners.... everything at the club is ****ed right now.

[kopdan]

outed them as in saying he wasnt being listened to about transfers. NOT that they have no money and want to stick debt on the club.

BIG difference

[Assassin]

Rafa was sulking and ended up outing them. Rafa deserves the sack nearly as much as we deserve new owners

FFS. You havent got a clue what you are talking about.......

Blah blah blah......

[pezzzer]

Rafa is very cleaver. He knows how to use the media to get what he want.

is correct

i keep saying that parry/moores have been nieve and didnt do there homework properly on thicks and gillet but you can bet your last bottom dollar benitez did.

he would of gone through hicks/gillet sports ventures with a fine tooth comb as soon as he learned of there interest, and he would of been horrified with the way hicks in particular runs his other clubs and the way supporters haver turned him because of this.

would rafa of told these concerns to moores/parry? of course he would!

moores and parry sold out to the yanks because there was more money in it for them, they new the risks and who they were dealing with, rafa would of made sure of that

moores sold us down the river and rafa made it public about his dislike for the new owners a,s,a,p to distance himself from moores choice of buyers

hope you enjoy that extra money mr moores.

[AFII]

yes, i agree.

He certainly moved quickly to get the fans on his side.

:smirk:

I don't believe for one second that Rafa is now in Hicks camp. He just use Hicks to get what he want, a new deal, and that will suit Hicks fine in his charm offensive.

Both of them get what they want.