Kenny Huang linked to Liverpool takeover

[Guest davelfc]

Liverpool board divided over whether to accept stunning Chinese government takeover bid

Hicks and Gillett want higher sale price than £325 million...

5 Aug 2010 09:30:00

 

 

Liverpool

EXCLUSIVE

 

By Wayne Veysey | Chief correspondent

 

 

The Liverpool boardroom is deeply divided over whether the club should accept a stunning takeover bid from the Chinese government.

 

Goal.com UK understands that American owners George Gillett and Tom Hicks are desperate to obstruct a swift deal in order to hold out for a big a profit as possible from the sale of the club.

 

This has angered the other three board members - chairman Martin Broughton, managing director Christian Purslow and commercial director Ian Ayre – who want to find the most sustainable owner for the club and believe that the bid fronted by sports entrepreneur Kenny Huang is the only serious contender.

 

It comes amid reports that China’s foreign investment arm China Investment Corporation (CIC) is the mystery backer behind Huang and could hand Liverpool manager Roy Hodgson a formidable £150 million transfer kitty to spend on new players.

 

Liverpool, who have debts of £237m, are expected to change hands later this month and the Chinese appear to be in pole position to win a takeover battle that also includes the American private equity consortium the Rhone Group and Syrian businessman Yahya Kirdi.

 

It is believed that Kirdi has a close working relationship with Gillett’s son, which has prompted speculation that the Syrian’s involvement is being used as a stalling tactic by the Anfield co-owner.

 

Yet the broker for Kirdi said today that the Syrian and his investment group are negotiating directly with the Americans – not with Broughton or Barclays Capital - and want to agree on a deal that would allow the pair to “walk away with a profit” before Liverpool open their Premier League campaign on 15 August.

 

“We are prepared to take as long as it takes to get the deal done properly but all the participants would be pleased if we could have it in place for Liverpool’s home Premier League opener against Arsenal,” said Dan Diamond, president of Montreal-based GameDay Leadership Management Consultants.

 

It is Gillett and Hicks’ decision to negotiate above the heads of their fellow directors that has angered Broughton, Purslow and Ayre, who share three of the five boardroom votes.

 

Broughton and Barclays Capital – the investment arm of Barclays Bank – were appointed on 16 April to handle the sale of the club and are aiming to make a final decision on a preferred bidder by the end of next week.

 

It is not known who Broughton feels is the strongest bid but it is understood that the non-executive chairman would want a consensus in the boardroom.

 

A source close to the process says that Purslow and Ayre favour the Huang-led Chinese consortium, which has assets of £209 billion under management. Most of the cash is tied up in equity and bond markets, although China Daily, the English language arm of the Chinese state media, reported yesterday that CIC has spent the past fortnight selling shares that would, coincidentally, raise precisely the amount of cash required to finance a bid for Liverpool.

 

Huang values Liverpool at around £325m, less than half Hicks’ £800m asking price. To break even on a sale, the American owners would need to fetch a price of £362m. They paid £218m for the club in 2007 and invested a further £144m

[JER]

bensmith_times

 

Tony Barrett will be hosting a #lfc webchat on The Times website from 2.30pm http://bit.ly/coRDtU

[Dirk]

Reading the article on the front page of today's Times, there's an interesting line from Helen Power and Tony Evans which implies that they won't own the club outright.

 

Both CIC and Mr Huang were unavailable for comment last night, but insiders said that CIC would end up owning the majority of the club if the consortium's planned bid - which values Liverpool at £300 million and £350 million - is successful.

[Albertini]

Reading the article on the front page of today's Times, there's an interesting line from Helen Power and Tony Evans which implies that they won't own the club outright.

 

Yep there are a number of questions still to be answered and Tony B's article is a good one.

 

Is kenny simply borrowing from CIC or will CIC own the club alongside him?

 

Is Kenny and CIC the same setup as H&G and RBS?

 

What is the full make-up and strucutre of the bid? What kind of returns are they looking for and when?

 

Whilst it is exciting we have got to get the rigth long term owners and not be swayed by PR and promises of £150 million warchests.

[Kennys_spell]

So someone from RAWK tells us the messiah is waiting in the wings' date=' and we're expected to believe it. The whole post reads like a propaganda piece by someone who has a vested interest. Anyone know who this Don Vito Corleone is ?[/quote']

 

A Mind is like a Parachute - it works best when it's Open.

[Durango]

Liverpool board divided over whether to accept stunning Chinese government takeover bid

Hicks and Gillett want higher sale price than £325 million...

5 Aug 2010 09:30:00

 

 

Liverpool

EXCLUSIVE

 

By Wayne Veysey | Chief correspondent

 

They paid £218m for the club in 2007 and invested a further £144m

 

Bollocks.

 

No way have they invested that kind of money.

 

Is there anyone out there who can breakdown this £144m owed to Kop Holdings?

 

The vast majority will be interest they've charged the Club in rolled up interest payments of 10% p.a....................unheard rates in these days of low interest rates.

 

Of that £144m owed to Kop, I'll bet half of it, is interest they've charged the Club

[Dirk]

Yep there are a number of questions still to be answered and Tony B's article is a good one.

 

Is kenny simply borrowing from CIC or will CIC own the club alongside him?

 

Is Kenny and CIC the same setup as H&G and RBS?

 

What is the full make-up and strucutre of the bid? What kind of returns are they looking for and when?

 

Whilst it is exciting we have got to get the rigth long term owners and not be swayed by PR and promises of £150 million warchests.

 

I think the deal is probably CIC, Hicks and Gillett as our owners. Which might explain why those two are willing to sanction the deal. They would retain a stake in the club which will increase in value as the stadium is built, allowing them each to make a decent profit.

Edited August 5, 2010 by Dirk

[razor]

Yep there are a number of questions still to be answered and Tony B's article is a good one.

 

Is kenny simply borrowing from CIC or will CIC own the club alongside him?

 

Is Kenny and CIC the same setup as H&G and RBS?

 

What is the full make-up and strucutre of the bid? What kind of returns are they looking for and when?

 

Whilst it is exciting we have got to get the rigth long term owners and not be swayed by PR and promises of £150 million warchests.

 

Of all the tabloid-speak cliches - "snapped up", "starlet" etc, 'warchest' is still my favourite.

[TheDrowningMan]

Reading the article on the front page of today's Times, there's an interesting line from Helen Power and Tony Evans which implies that they won't own the club outright.

 

I wonder if it would be a case of "we take overall control and (to Hicks and Gillett) you sell the remainder of your stake to a mutually acceptable buyer". I can't see them sticking around for long.

[aiyic]

Thought just occurred to me - will the new stadium get be another new design again? If so, that's a lot of money down the drain again.

[redsfan]

Liverpool board divided over whether to accept stunning Chinese government takeover bid

Hicks and Gillett want higher sale price than £325 million...

5 Aug 2010 09:30:00

 

 

Liverpool

EXCLUSIVE

 

By Wayne Veysey | Chief correspondent

 

 

The Liverpool boardroom is deeply divided over whether the club should accept a stunning takeover bid from the Chinese government.

 

Goal.com UK understands that American owners George Gillett and Tom Hicks are desperate to obstruct a swift deal in order to hold out for a big a profit as possible from the sale of the club.

 

This has angered the other three board members - chairman Martin Broughton, managing director Christian Purslow and commercial director Ian Ayre – who want to find the most sustainable owner for the club and believe that the bid fronted by sports entrepreneur Kenny Huang is the only serious contender.

 

It comes amid reports that China’s foreign investment arm China Investment Corporation (CIC) is the mystery backer behind Huang and could hand Liverpool manager Roy Hodgson a formidable £150 million transfer kitty to spend on new players.

 

Liverpool, who have debts of £237m, are expected to change hands later this month and the Chinese appear to be in pole position to win a takeover battle that also includes the American private equity consortium the Rhone Group and Syrian businessman Yahya Kirdi.

 

It is believed that Kirdi has a close working relationship with Gillett’s son, which has prompted speculation that the Syrian’s involvement is being used as a stalling tactic by the Anfield co-owner.

 

Yet the broker for Kirdi said today that the Syrian and his investment group are negotiating directly with the Americans – not with Broughton or Barclays Capital - and want to agree on a deal that would allow the pair to “walk away with a profit” before Liverpool open their Premier League campaign on 15 August.

 

“We are prepared to take as long as it takes to get the deal done properly but all the participants would be pleased if we could have it in place for Liverpool’s home Premier League opener against Arsenal,” said Dan Diamond, president of Montreal-based GameDay Leadership Management Consultants.

 

It is Gillett and Hicks’ decision to negotiate above the heads of their fellow directors that has angered Broughton, Purslow and Ayre, who share three of the five boardroom votes.

 

Broughton and Barclays Capital – the investment arm of Barclays Bank – were appointed on 16 April to handle the sale of the club and are aiming to make a final decision on a preferred bidder by the end of next week.

 

It is not known who Broughton feels is the strongest bid but it is understood that the non-executive chairman would want a consensus in the boardroom.

 

A source close to the process says that Purslow and Ayre favour the Huang-led Chinese consortium, which has assets of £209 billion under management. Most of the cash is tied up in equity and bond markets, although China Daily, the English language arm of the Chinese state media, reported yesterday that CIC has spent the past fortnight selling shares that would, coincidentally, raise precisely the amount of cash required to finance a bid for Liverpool.

 

Huang values Liverpool at around £325m, less than half Hicks’ £800m asking price. To break even on a sale, the American owners would need to fetch a price of £362m. They paid £218m for the club in 2007 and invested a further £144m

 

 

It was in the echo yesterday that when the board decides on the bidder they wish to accept, both the yanks would accept the offer and have given Broughton their word they would back a deal if the board considered it the best offer for the club.

 

The way I can see it transpiring is that if they go back on their word, Broughton will then accept a majority vote.

[Guest Numero Veinticinco]

Strange how none of the 'ITKs' have mentioned that as a possibility. It'll be a crying shame if the yanks hold onto to any of the club.

[Barrington Womble]

Bollocks.

 

No way have they invested that kind of money.

 

Is there anyone out there who can breakdown this £144m owed to Kop Holdings?

 

The vast majority will be interest they've charged the Club in rolled up interest payments of 10% p.a....................unheard rates in these days of low interest rates.

 

Of that £144m owed to Kop, I'll bet half of it, is interest they've charged the Club

 

expenses and that sparkling new stadium they've spent tens of millions on.

[Guest davelfc]

Kenny Huang: ‘No more updates until Liverpool choose to talk’

 

By Nick Harris

 

5 August 2010

 

A spokeswoman for Kenny Huang, whose interest in Liverpool has graduated from the back pages to the front pages of British newspapers this morning amid claims that he is backed by the China Investment Corporation, has told sportingintelligence this morning that confirmation of any further developments must come from Liverpool.

 

A spokeswoman for Huang, 46, speaking this morning from the Hong Kong office of Hill & Knowlton, said: “We will not confirm or deny any matter associated with the Liverpool Football Club unless and until we and the representatives of Liverpool FC have chosen to do so jointly.”

 

This throws the ball back into Liverpool’s court, but crucially, does not actually confirm whether CIC, which manages funds of $332bn, is in fact backing Huang’s potential takeover of the club.

 

As sportingintelligence reported last night, Liverpool’s board has had NO proof of funding yet from any of the potential bidders for the club.

 

It has yet to be established beyond doubt whether CIC is indeed backing Huang, which would be completely new direction for CIC to take.

 

This website understands that Huang has also, so far, not made it clear to his own PR advisors whether he is actually backed by CIC or not.

 

More details on Huang’s denial yesterday of any formal bid and on his business interests, can be found in here.

 

In what remains a hugely confusing story, sportingintelligence has been forwarded a draft statement allegedly prepared on behalf of Kenny Huang by separate PR advisors within China; this statement is now in circulation within media circles in mainland China.

 

The statement includes the lines: “Mr Huang would also like to deny that there is any involvement of Mainland China state-owned enterprises in his business dealings. If there is any related development, he will make a further announcement.”

 

Hill & Knowlton in Hong Kong say they have no knowledge of this statement, and will provide further confirmation of its authenticity when they can. At the time of writing – 10am on Thursday morning, UK time – H&K say that Kenny Huang is traveling and unreachable for further comment at the moment. He is on business and his plane is due to land in four hours.

 

http://www.sportingi...2%80%99-050801/

[Carra_is_legend]

expenses and that sparkling new stadium they've spent tens of millions on.

 

Aye

 

£350m to break even, my arse!

 

The two cunts have achieved a massive thing in making so many people believe that the £350m debt is genuine and every penny was spent towards the club.

 

I would say they will break even by about £250m-£270m, nothing more.

[Kennys_spell]

I'm operating along the lines of 'whatever the yanks don't want is what I want'.

 

I want to "Rep" that post - I don't seem to have the "Rep" button anymore. Where has it gone these days?

[Jim MM]

Kenny Huang: ‘No more updates until Liverpool choose to talk’

 

By Nick Harris

 

5 August 2010

 

.... At the time of writing – 10am on Thursday morning, UK time – H&K say that Kenny Huang is traveling and unreachable for further comment at the moment. He is on business and his plane is due to land in four hours.

 

http://www.sportingi...2%80%99-050801/

 

Expect dozens of cab drivers to be logging in around 2pm with reports of him spotted on his way to Anfield.

[Guest davelfc]

Well for a quarter of the population of the world we could be the people's club.

[Horus]

I want to "Rep" that post - I don't seem to have the "Rep" button anymore. Where has it gone these days?

 

Paid up member privilege only since the upgrade.

[RedinSweden]

Thought just occurred to me - will the new stadium get be another new design again? If so, that's a lot of money down the drain again.

 

It will if the Syrian wins. First off it is going to have a massive sunbed.

[Kennys_spell]

Paid up member privilege only since the upgrade.

 

 

Ahhh thanks.

[Kennys_spell]

I'm sure Shankly would be proud to see LFC in the hands of people who manage to repress their people so well that labour unions virtually don't exist.

 

I'm not comfortable with this at all and I've got a feeling that the sea of moral cowards, that will be too busy wanking themselves silly over the sniff of a trophy to consider the human rights abuses in China, will push me to be even less comfortable with it. As will throwing money about like the other classless cunts that play in shades of blue.

 

Are there any potential owners out there that haven't got questionable human rights/ethics etc?

[Ted]

Pixar?

[RedKnight]

Richard Branson?

[Trumo]

Are there any potential owners out there that haven't got questionable human rights/ethics etc?

 

You don't build up funds like that without recourse to dubious or immoral activities at some point.