Bear Stearns bail out lifts DIC over Liverpool bid

[Only1mboy]

Sorry if posted already

Bear Stearns bail out lifts DIC over Liverpool bid
tribalfootball.com - March 18, 2008

The emergency bail out of American bank Bear Stearns is being linked to renewed confidence from Dubai International Capital that Tom Hicks is ready to discuss selling Liverpool.

The Times says the likelihood of Hicks being forced to sell his stake in the club to DIC increased over the weekend as the Texan - whose co-ownership of Liverpool is highly leveraged - felt the pinch of the worsening credit crisis in the wake of the emergency bailout of Bear Stearns, the American investment bank, which is to be bought by JP Morgan, the financial services firm, for 6 per cent of its market value.

Publicly, Hicks maintains that he has no intention of selling his half-stake in the club, but DIC is thought to be confident that a deal can be struck with him and George Gillett that would see the private equity investment arm of the Dubai government take over ownership at Anfield.

[Slinky Skills]

We can only dream!!

[slimbimjim]

I really hope this is true now. I just want a settled upstairs so we can do the business downstairs.

[-V-]

Stupid article. That bank is in no way connected to Hicks or Liverpool. It is merely a sign of the Market troubles.

Lazy Journalism at its worst. Its laughable. Everytime a bit of bad news comes out about the american economy some **** runs to link it with Hicks/Liverpool

Daft

[Fiddy]

Sorry if posted already

Bear Stearns bail out lifts DIC over Liverpool bid
tribalfootball.com - March 18, 2008

The emergency bail out of American bank Bear Stearns is being linked to renewed confidence from Dubai International Capital that Tom Hicks is ready to discuss selling Liverpool.

The Times says the likelihood of Hicks being forced to sell his stake in the club to DIC increased over the weekend as the Texan - whose co-ownership of Liverpool is highly leveraged - felt the pinch of the worsening credit crisis in the wake of the emergency bailout of Bear Stearns, the American investment bank, which is to be bought by JP Morgan, the financial services firm, for 6 per cent of its market value.

Publicly, Hicks maintains that he has no intention of selling his half-stake in the club, but DIC is thought to be confident that a deal can be struck with him and George Gillett that would see the private equity investment arm of the Dubai government take over ownership at Anfield.

AF should stick to football stories

[Milan_Milan]

Stupid article. That bank is in no way connected to Hicks or Liverpool. It is merely a sign of the Market troubles.

Lazy Journalism at its worst. Its laughable. Everytime a bit of bad news comes out about the american economy some **** runs to link it with Hicks/Liverpool

Daft

Thought it looked a bit questionable but didn't want to be the first to mention it! Unless he held a load of Bear shares it shouldn't really affect him at all!

[El Jefecito]

Thought it looked a bit questionable but didn't want to be the first to mention it! Unless he held a load of Bear shares it shouldn't really affect him at all!

It will hurt him a bit, the credit market is crashing and Hicks will need to refinance the loans we've just taken out next year. Debt will be far more expensive then, and hence even greater interest payments, which our profit may not be adequate to cover. Has Hicks got enough $ to support that level of expenditure between now and when the new stadium is open.

DIC, I imagine, are hoping that this will be playing on Hicks mind, and may encourage him to sell-up (for a handsome profit of course).

[Nicey]

Stupid article. That bank is in no way connected to Hicks or Liverpool. It is merely a sign of the Market troubles.

Lazy Journalism at its worst. Its laughable. Everytime a bit of bad news comes out about the american economy some **** runs to link it with Hicks/Liverpool

Daft

Think this time they might actually be on the money excuse the pun

[sonsofthedesert]

Think this time they might actually be on the money excuse the pun

He will need to refinance the deal in about 17 months tme as well as borrow more money. What has happened in the global credit markets and bear stearns will effect the desire of banks to lend money, so yes it will effect him.

[carlton]

He will need to refinance the deal in about 17 months tme as well as borrow more money. What has happened in the global credit markets and bear stearns will effect the desire of banks to lend money, so yes it will effect him.

banks and other investors will think long and hard before parting with their money as you say. there is no way Hicks can do this on his own and if things get worse in the credit markets he will be close to desperate given debt is his preferred model of investment. His bankers may even encourage him to think about alternatives like DIC.

[Assassin]

Sorry if posted already

Bear Stearns bail out lifts DIC over Liverpool bid
tribalfootball.com - March 18, 2008

The emergency bail out of American bank Bear Stearns is being linked to renewed confidence from Dubai International Capital that Tom Hicks is ready to discuss selling Liverpool.

The Times says the likelihood of Hicks being forced to sell his stake in the club to DIC increased over the weekend as the Texan - whose co-ownership of Liverpool is highly leveraged - felt the pinch of the worsening credit crisis in the wake of the emergency bailout of Bear Stearns, the American investment bank, which is to be bought by JP Morgan, the financial services firm, for 6 per cent of its market value.

Publicly, Hicks maintains that he has no intention of selling his half-stake in the club, but DIC is thought to be confident that a deal can be struck with him and George Gillett that would see the private equity investment arm of the Dubai government take over ownership at Anfield.

This is Bull****, Hicks was involved with Bear Stearns earlier, but he is not involved with them now

[Imy]

American Interest Rates went down yesterday too which should help Hicks.

[MattB]

I think the point is not that Bear Stearns is directly involved with Hicks. It is that all of Hicks' investments are leveraged to the hilt - leveraged against the value of the assets. If the value of those assets goes down he loses leverage and ends up in a kind of negative equity scenario.

Couple that with the fact that the private equity/leveraged buy-out market is going tits up

And the fact that the banks are struggling and therefore tightening their credit/lending policies (the very banks who are underpinning all Hicks' investments with lines of credit) - and any banks getting bailed out will have a huge knock on effect on that score.

And it becomes pretty clear that Hicks is probably in a tricky situation as regards his US investments.

All grist to the mill in terms of his stake in LFC - so, indirectly at least, another bank going to the wall is relevant I reckon. Though of course, it is also rather bad news for all of us - especially if you are a home owner...