Liverpool in tug of war as DIC close in on deal
By David Bond, Chief Sports Reporter
Last Updated: 12:40am GMT 05/03/2008
Liverpool's chief executive, Rick Parry, was involved last night in crucial talks between Dubai International Capital and lawyers for George Gillett, as the Arab investment company tried to close a deal for the American's 50 per cent stake in the club.
Although Gillett's co-owner, Tom Hicks, continued to insist yesterday that he would block him from selling out to DIC, The Daily Telegraph can reveal that negotiations between Gillett's legal team, Parry and PCP Capital Partners, advisers to the Dubai group, continued late into the night. They broke up shortly before 11pm with no agreement with Gillett reached.
Although the offer, thought to be in the region of £80 million, would give Gillett a massive profit on his initial £7m cash investment in the club last February, it is understood he is holding out for more. Talks are expected to resume this morning.
While Parry's involvement in the negotiations would appear to suggest he is controversially siding with DIC in their bid for control, a source close to the Liverpool chief executive insisted last night that he had been invited to the meeting near Westminster as an independent observer. The source stressed that Parry's prime role at the meeting was to protect the interests of the club.
The critical talks came at the end of a day when DIC raised the stakes in the battle for control of Anfield. Speaking for the first time in public about DIC's second bid for Liverpool inside 13 months, Sameer Al Ansari, chief executive of DIC, confirmed the talks and accused Hicks and Gillett of being in "dreamland" over their valuations of the club.
"It's no secret that we have been in discussions with the current owners," Al Ansari said. "It's not easy because the owners are in dreamland about valuations at the moment." With Hicks defiantly refusing to go quietly, the key to the success of DIC's latest raid on Anfield now hinges on the outcome of talks with Gillett.
DIC yesterday made an offer worth more than £450m to the Americans, who bought Liverpool for £220m last February. That offer includes the £350m of debt recently refinanced by Hicks and Gillett with Royal Bank of Scotland and US investment bank Wachovia, plus at least £25m in cash to Hicks and around £80m to Gillett in return for their equity.
Hicks immediately rejected the offer yesterday and, according to sources close to the Texan billionaire, made it clear that he not only has first refusal on Gillett's shares but also has the power to veto anyone he tries to sell them to.
It is also understood that he now wants to buy one per cent of Gillett's stock, giving him the protection of a 51 per cent majority holding and allowing him to obtain complete control at Anfield. He has indicated he would allow Gillett to dispose of his remaining 49 per cent but would still be unlikely to endorse a deal with DIC.
One DIC source dismissed the threat last night, claiming it would trigger a change of control clause in the terms of the new loans which were signed off in January. DIC believe they have the backing of the banks to press ahead with their bid for control of the club.
Nevertheless Hicks' determination to remain in charge at Liverpool remains undimmed and even if DIC manage to clinch a deal with Gillett, they may be forced to accept an uneasy power sharing arrangement with Hicks. DIC have made it clear, however, that they want complete management control of the club.
Liverpool fans anxious for an end to this saga will fear the effects of a stalemate between warring owners. Despite Hicks' defiance, DIC are confident that it will only be a matter of time before he agrees to do a deal with them. They believe his American business empire is in trouble and the failure of recent attempts to raise money through a partial flotation of Hicks Holdings in the US have wrecked any hopes he had of seeing off the threat of DIC by buying out Gillett himself.
By David Bond, Chief Sports Reporter
Last Updated: 12:40am GMT 05/03/2008
Liverpool's chief executive, Rick Parry, was involved last night in crucial talks between Dubai International Capital and lawyers for George Gillett, as the Arab investment company tried to close a deal for the American's 50 per cent stake in the club.
Although Gillett's co-owner, Tom Hicks, continued to insist yesterday that he would block him from selling out to DIC, The Daily Telegraph can reveal that negotiations between Gillett's legal team, Parry and PCP Capital Partners, advisers to the Dubai group, continued late into the night. They broke up shortly before 11pm with no agreement with Gillett reached.
Although the offer, thought to be in the region of £80 million, would give Gillett a massive profit on his initial £7m cash investment in the club last February, it is understood he is holding out for more. Talks are expected to resume this morning.
While Parry's involvement in the negotiations would appear to suggest he is controversially siding with DIC in their bid for control, a source close to the Liverpool chief executive insisted last night that he had been invited to the meeting near Westminster as an independent observer. The source stressed that Parry's prime role at the meeting was to protect the interests of the club.
The critical talks came at the end of a day when DIC raised the stakes in the battle for control of Anfield. Speaking for the first time in public about DIC's second bid for Liverpool inside 13 months, Sameer Al Ansari, chief executive of DIC, confirmed the talks and accused Hicks and Gillett of being in "dreamland" over their valuations of the club.
"It's no secret that we have been in discussions with the current owners," Al Ansari said. "It's not easy because the owners are in dreamland about valuations at the moment." With Hicks defiantly refusing to go quietly, the key to the success of DIC's latest raid on Anfield now hinges on the outcome of talks with Gillett.
DIC yesterday made an offer worth more than £450m to the Americans, who bought Liverpool for £220m last February. That offer includes the £350m of debt recently refinanced by Hicks and Gillett with Royal Bank of Scotland and US investment bank Wachovia, plus at least £25m in cash to Hicks and around £80m to Gillett in return for their equity.
Hicks immediately rejected the offer yesterday and, according to sources close to the Texan billionaire, made it clear that he not only has first refusal on Gillett's shares but also has the power to veto anyone he tries to sell them to.
It is also understood that he now wants to buy one per cent of Gillett's stock, giving him the protection of a 51 per cent majority holding and allowing him to obtain complete control at Anfield. He has indicated he would allow Gillett to dispose of his remaining 49 per cent but would still be unlikely to endorse a deal with DIC.
One DIC source dismissed the threat last night, claiming it would trigger a change of control clause in the terms of the new loans which were signed off in January. DIC believe they have the backing of the banks to press ahead with their bid for control of the club.
Nevertheless Hicks' determination to remain in charge at Liverpool remains undimmed and even if DIC manage to clinch a deal with Gillett, they may be forced to accept an uneasy power sharing arrangement with Hicks. DIC have made it clear, however, that they want complete management control of the club.
Liverpool fans anxious for an end to this saga will fear the effects of a stalemate between warring owners. Despite Hicks' defiance, DIC are confident that it will only be a matter of time before he agrees to do a deal with them. They believe his American business empire is in trouble and the failure of recent attempts to raise money through a partial flotation of Hicks Holdings in the US have wrecked any hopes he had of seeing off the threat of DIC by buying out Gillett himself.
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