DIC: takeover thread

[coop]

Lets just imagine DIC managed to get 100% they know steading the ship as you would any business is paramount to success. By taking this into account they know Rafa is doing a good job, regardless to how this season ends up, he has the majority of the fans backing so why would DIC then go ahead and replace him.

 

I do think at the moment Rafa is almost untouchable in that the off the field problems have strengthened his position but if DIC did take over and backed Rafa well in the transfer market as well as a no off the field distractions then i think DIC would review the situation at the end of next season and if we hadnt made any kind of league challenge again then Rafa would be under pressure.

 

Im not sure of the legal wrangles but i was always under the impression that when you enter into a business partnership that is 50/50 each then both partners are expected to put in the same amount of money as the other partner so if one partner puts in £20 million then the other partner must put £20 million in as well otherwise they have to dilute their share.

 

Like i said im not fully up on the legal stuff and there is always the chance that Hicks and Gillett had it inserted into the contract that this isnt the case because of course Hicks has more money then Gillett and he could have gone down this route himself to gain majority control.

 

There is still more to run and i expect meetings between Hicks/Gillett and DIC to continue behind the scenes and quite possibly after the Chelsea match next week but personally i do think that DIC will buy Gilletts shares and possibly over the next few weeks but i dont think Hicks will go without a struggle.

 

One possible scenario which the papers havent picked up on is the reason why DIC want the stadium starting asap. I think its not only for the extra income it would generate but also the fact that if the stadium is going to cost around £300 million DIC can say 'here is the our half of the cash, wheres yours'.

 

In that respect Hicks would have to find £150 million straight away as DIC can refuse to fund the loans for the stadium via future profits or naming rights like Hicks was probably planning.

[RedinSweden]

Hopefully being in a broadshet it has a litle more weight to it. Sounds promising if DIC can effctively buy out Gillett's half in the next couple of weeks (though legally can't be completed until end of May). If that happens, then hopefully Hicks will realise the game is up, as he would be unable to match his new co-owners (in terms of funding for tranfers, stadium, debt).

 

I also like the noises about DIC rating Rafa. I was uncomfortable with many of our fans seeing Rafa in cahoots with Hicks. I don't think it was ever like that, but what's Rafa supposed to do when his boss latches on like a leech?

 

Hopefully this can all be sorted out before the end of the season so Rafa knows whether he can shop at Harrods or Aldi.

 

Why not until May?

[coop]

Why not until May?

 

Because DIC can agree a deal with Gillett, if they already havent to buy his share but they cant legally sign the documents until the veto period has ended which is rumoured to be in May.

 

Its much like us agreeing to sign a player but we cant legally sign him until the transfer window opens.

[G Richards]

Why not until May?

 

Apparently that's when the 90 day period expires (I think I had read May 27th somewhere). This is how long Hicks has to come up with the money to match DIC's offer to buy Gillett's shares.

 

By all accounts Hicks is struggling to do that, and he has been knocked back by many banks and financial institutions. He remains very bullish though, but this is either bravado, or he really does has something lined up. The time rapidly approaches when we will find out.

 

Either way, Gillett is insistent on selling to DIC. If Hicks can match the offer, then I would have thought it will go to the courts. In all likelihood he can't, and this whole sorry mess will be coming to a conclusion soon, dare I even say, imminently!

[RedinSweden]

i think there is a lot of guessing going on as to the content of the agreement between G&H. I just have a feeling that it would be publicised more if DIC had made an offer and we were in a 90 day veto period. I don't think anyone really knows whats going on.

[theRedHorse]

April 24, 2008

 

Tom Hicks ignores takeover talk to concentrate on summer of rebuilding

Oliver Kay

 

Tom Hicks, the controversial Liverpool co-owner, has held talks with Rafael Benítez about a possible summer transfer strategy as he battles to ride the storm that continues to rage around the club. The two met on Tuesday morning and again yesterday, with Hicks promising to support Benítez in his pursuit of potential reinforcements such as Gareth Barry, the Aston Villa captain.

 

Whether Hicks will continue to call the shots at Anfield beyond the end of the season remains unclear, with Dubai International Capital (DIC) still confident that it will effectively take control by buying George Gillett Jr's 50 per cent stake at the end of May. But Hicks, who maintains that DIC's ambitions will not be realised, continues to talk and act like a man who believes that he will be running the club for both the short and the long term.

 

Hicks made a rare appearance at Anfield on Tuesday night as Liverpool were held to a 1-1 draw by Chelsea in their Champions League semi-final, first leg, having spoken to Benítez at Melwood, the training ground, earlier. The Texan and his son, Tom Jr, a fellow director, returned to Melwood yesterday morning, when they held further conversations with Benítez, listening to his well-documented frustrations and discussing potential transfer targets and how any such moves would be financed.

 

“We had a great meeting,” Hicks said before yesterday's second discussion. “We talked about a lot of things and it was very positive and encouraging. We have agreed to meet again and it is a very healthy situation. Rafa is happy and wants to talk about where he is taking the club.”

 

There were claims from some sources that Benítez had told Hicks that he was unwilling to discuss anything of significance unless Gillett, the Texan's estranged co-owner, and Rick Parry, the chief executive, were in attendance. But Hicks said: “I am surprised if anyone else is saying different. We plan to all get together and discuss the future and Rafa is happy with that.”

 

Those words hinted at a breakthrough of sorts, but there are no other signs that a peace summit is in prospect. Gillett remains determined to sell his 50 per cent stake to DIC in the belief that, despite Hicks's fierce objections, it will be able to buy at the end of May, at the expiry of a 90-day exclusivity period offering Hicks first option on his partner's shares. Hicks, who has also caused consternation by demanding the resignation of Parry, maintains that no such clause exists in the share document and that DIC - which sent Sameer al-Ansari, its chief executive, and Amanda Staveley, the chief negotiator, to Anfield on Tuesday - will not get a single share in the club.

 

Benítez, meanwhile, has a list of potential summer targets, including Barry, the England midfield player, whose arrival would cast serious doubts about the future of Xabi Alonso at Anfield. Other targets include a right back, at least one winger and several promising young players.

 

Villa are determined not to lose Barry, their most influential player, and are preparing to offer a significant improvement on his £42,000-a-week contract. “If players are doing really well and deserving of new contracts or renegotiated deals, I have not got a problem with that,” Martin O'Neill, the Villa manager, said yesterday.

 

 

 

Tom Hicks ignores takeover talk to concentrate on summer of rebuilding | Liverpool - Times Online

[Guest Kenny]

Imminent.

[coop]

The Game Podcast - The Best Football podcast on the web

 

Ballague talks about us signing Barry or Bentley plus he seems to think DIC have agreed to buy the club and will announce the deal the minute after the 90 day deal has expired.

 

Hicks expected to try and block the sale by taking it to court.

 

Download the podcast and fast forward to 9 minutes 30 secs ish.

 

Ballague saying the only reason Rafa seems to be siding with Hicks is because Hicks is the only replying to Rafa when he trys ringing or emailing them.

[lifetime fan]

How can they buy the whole club if Hicks doesn't want to sell? Or are they confident of buying 50% after the 90 days?

 

I'm still not pleased we're being linked with either Bentley or Barry.

[coop]

How can they buy the whole club if Hicks doesn't want to sell? Or are they confident of buying 50% after the 90 days?

 

I'm still not pleased we're being linked with either Bentley or Barry.

 

Dic are confident in buying Gilletts shares after the 90 day deadline and then setting about removing Hicks fat arse off the board.

[coop]

What is also interesting is i hear the Sheikh is getting involved and it may well not be DIC who buy us but him personally.

[Carra_is_legend]

What is also interesting is i hear the Sheikh is getting involved and it may well not be DIC who buy us but him personally.

 

Don't know where you heard that from Coop, today's echo said something along those lines as well.

[ticklemeclemo]

What is also interesting is i hear the Sheikh is getting involved and it may well not be DIC who buy us but him personally.

 

What would be the difference? Serious question by the way..

[Anny Road]

[zigackly]

What would be the difference? Serious question by the way..

 

$$$

[Section_31]

What would be the difference? Serious question by the way..

 

The difference between an investment and a hobby/toy/passion depending on the man I imagine.

 

I'm genuinley easy so long as the current situation ends, Bin Laden could buy us for all I fucking care.

[WaltonRed]

If the sheik buys us that mean it will be a hobby rather than DIC and it being a business investment?

[bobhorse]

How can they buy the whole club if Hicks doesn't want to sell? Or are they confident of buying 50% after the 90 days?

 

I'm still not pleased we're being linked with either Bentley or Barry.

 

it is easy really they would have 4 -2 on the board they would then commit to a new stadium

They would ask the board to approve a rights issue and they would underwrite that issue and then that would dilute Hicks stake unless he can come up with the 50% which he cant

 

They wouldnt use his designs either or his contractors to build it and as soon as they have the majority share holding Hicks is Fucked and might as well sell up now for best price as DIC wont buy him out when he is in the minority there is no need as long as they have the 4-2 vote with Parry and Moores

 

And he would be left with an investment that he couldnt sell to anyone for half the price he is being offered now as its value would dilute also after the rights issue

 

hope that makes some sort of sense

[edinjapan]

it is easy really they would have 4 -2 on the board they would then commit to a new stadium

They would ask the board to approve a rights issue and they would underwrite that issue and then that would dilute Hicks stake unless he can come up with the 50% which he cant

 

They wouldnt use his designs either or his contractors to build it and as soon as they have the majority share holding Hicks is Fucked and might as well sell up now for best price as DIC wont buy him out when he is in the minority there is no need as long as they have the 4-2 vote with Parry and Moores

 

And he would be left with an investment that he couldnt sell to anyone for half the price he is being offered now as its value would dilute also after the rights issue

 

hope that makes some sort of sense

 

Let's hope that is exactly what happens Bob. Followed by the rest of his empire sliding into bankruptcy.

[diego]

In theory the BoD should be able to authorise a new rights issue and by that means reduce TH's percentage giving DIC a controlling majority of the shares. And then they could call for a new stadium design and make life increasingly difficult for TH.

 

Even if all that were to happen, TH would not necessarily sell his shares to DIC.

 

He could sell to others - which probably would be fine with DIC as long as they had a controlling vote.

 

Or he could stay. What's wrong with being a 45%, 40%, 35% holder of LFC whose value is being increased by fresh capital injected by the mjaority shareholder? It might still be a very good investment for him with no further cash outlay.

[aws]

There is no way the Board of the club will have the authority to sanction major expenditure or a new rights issue without approval from the parent company (where the voting will effectively be one each for Gillett and Hicks).

 

The Parry and Moores votes are largely window-dressing.

[Carra_is_legend]

And then they could call for a new stadium design and make life increasingly difficult for TH.

 

It won't make life difficult for him. Going by your argument, if he is only a minority shareholder, he will just take it in quietly. Any more delays in the stadium will only affect us as a club.

 

Or he could stay. What's wrong with being a 45%, 40%, 35% holder of LFC whose value is being increased by fresh capital injected by the mjaority shareholder? It might still be a very good investment for him with no further cash outlay.

 

It doesn't work like that does it? If DIC inject cash into LFC, Hicks has to. He can't keep quite while DIC are investing and then come shouting when DIC are taking dividends out.

[m0e]

I've been told the following:

 

There is no 90-day deadline.

 

Gillett can sell to DIC.

 

DIC will not buy 50%.

 

There is no legal way of pushing Hicks out once they have 50%.

 

They tried to agree a deal where Hicks would then sell his stake once the stadium is completed.

 

Hicks wants to be here until that point. He wants to build the stadium. He wants to be involved in the naming rights.

 

Plan B is to wait until the refinance is needed before trying to squeeze him out. Ideally, though, they want him out in the summer.

 

Amanda will have nothing to do with the running of the club.

 

Neither will Ansari.

 

Gillett is not ill (health-wise at least).

 

On a separate issue, they had originally put aside money to pay off Rafa and bring in Mourinho. I don't know if that's still the case, but Ansari is said to be worried about our Prem Lg performances, despite admitting that more financial muscle is needed to compete with Chelsea / Man Utd.

 

To sum all this up, it looks like we're waiting until the loan expiry before anything concrete happens.

[Plewggs]

I've been told the following:

 

 

On a separate issue, they had originally put aside money to pay off Rafa and bring in Mourinho. I don't know if that's still the case, but Ansari is said to be worried about our Prem Lg performances, despite admitting that more financial muscle is needed to compete with Chelsea / Man Utd.

 

To sum all this up, it looks like we're waiting until the loan expiry before anything concrete happens.

 

 

By "they" are you referring to DIC?

[bobhorse]

In theory the BoD should be able to authorise a new rights issue and by that means reduce TH's percentage giving DIC a controlling majority of the shares. And then they could call for a new stadium design and make life increasingly difficult for TH.

 

Even if all that were to happen, TH would not necessarily sell his shares to DIC.

 

He could sell to others - which probably would be fine with DIC as long as they had a controlling vote.

 

Or he could stay. What's wrong with being a 45%, 40%, 35% holder of LFC whose value is being increased by fresh capital injected by the mjaority shareholder? It might still be a very good investment for him with no further cash outlay.

 

Ok lets say that is what happenens TH ownes now 50% of a Business worth

440m

if he can't find the money for his 50% of the stadium costs and DIC underwite it his stake in the company would be diluted to 25% if the stadium costs are 400m as he would only have 220M of something that cost 840m

 

He cant sell to anyone else as he would first have to offer them to DIC no one would want to put 220m into something they have no say in what so ever as the would be in a 4-2 position

 

If DIC get 50% it is all over for HIcks and he knows that