Dubai International to make bid for Liverpool FC - Liverpool Daily Post.co.uk
Dubai International to make bid for Liverpool FC
Jan 17 2008 by Tony Barrett
Anfield stadium from the air (320)
DUBAI International Capital is ready to make an offer for Tom Hicks’s stake in Liverpool FC.
It is understood that senior executives at the Dubai-based international investment company were given the go-ahead by Sheikh Mohammed Al Maktoum to launch a second bid to buy into Liverpool in a year.
An offer has been agreed in principle.
A source close to DIC today has said the bid would be for a half share in the club with the Arab consortium willing to enter into a dual ownership deal with George Gillett.
He said: “It is a very delicate situation but DIC has reignited its interest in Liverpool Football Club.
“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.
“The offer is now being written up and it should be only a matter of time before it is delivered to Hicks.”
Co-owners Hicks and Gillett are edging closer to clinching a refinancing deal.
But DIC are hoping to make a move before any deal is completed.
Hicks and Gillet enjoyed a honeymoon period after their acquisition of the Reds.
But recent revelations they talked to Jurgen Klinsmann about the possibility of replacing the hugely popular Rafa Benitez as manager have led to them falling out of favour with the Liverpool fans.
While the financial restructuring deal, which would give them the necessary collateral to fund the building of the long-awaited new stadium, remains incomplete, DIC believe a window of opportunity still remains open to them.
Whether Hicks is willing to sell is another matter entirely.
The Dallas-based multi-millionaire is on record saying he is not interested in selling his stake, even though there are tensions between himself and Gillett about the proposed refinancing deal.
In a recent interview Hicks said: “I just want to clear up with you that I am not selling any of my shares to anybody.
“I have no idea why anyone would think that. It was just rubbish.”
But with Sheikh Mohammed, one of the world’s richest men, now back on the scene Hicks looks likely to face some tough decisions in the days to come.
On the one hand a deal with DIC could present him with a sizeable return on his initial investment and an opportunity to walk away from the dual problems of securing the necessary loans to service their own debt, fund the new stadium and winning the fans over all over again.
But, on the other, there may be a reluctance to part with an asset which he fought so hard to acquire, one which he firmly believes can pay dividends in the long term.
Hicks insists financial restructuring could be complete within days, and if he is proven right it will make an immediate offer from DIC less likely.
The American pair have six weeks to secure a £350m loan that would refinance their original purchase of the club.
Hicks recently said he hopes a deal can be signed off with the Royal Bank of Scotland and the US investment bank Wachovia by the middle of next week.
If, as expected, DIC follow up their interest with a firm bid the ownership of Liverpool FC could change for the second time in a year.
Club officials said today: “We do not comment on speculation.”
