Slimmy

Its unlike you to be so negative ;)

Liverpool still a target for Dubai takeover Sep 16 2008 by Tony Barrett, Liverpool Echo LIVERPOOL could still end up in the hands of Dubai - despite Dubai International Capital's insistence that it is no longer pursuing a deal to buy the club. DIC – the investment arm of the Dubai government – put out an official statement yesterday denying it is ready to launch a fresh bid for the Reds or a new one for Newcastle United. But it has been several months since DIC were leading the Dubai bid for Liverpool, with Sheikh Mohammed bin Rashid Al Maktoum having made acquiring the Anfield club a personal rather than a government venture. DIC are out of the picture because – as Dubai’s investment arm – they must always make a return on any purchases. Liverpool’s troubled financial situation means that is now a pledge DIC can no longer realistically make. An offer from Dubai remains on the table, but owners Tom Hicks and George Gillett are currently refusing to do a deal. The Americans claim publicly that they are not interested in selling, but sources close to the situation insist they will cash in – but only if they walk away with around £100m in profit each. That is a price which Dubai are not prepared to pay. Dubai's determination to buy the club has not diminished but unless the expectations of Hicks and Gillett are reduced they are prepared to walk away. The ECHO understands that Hicks made an approach to Abu Dhabi prior to the cash rich Middle Eastern city buying Manchester City, but that was rebuffed. It is not clear whether Hicks was trying to sell the whole club to the Emirate or was offering a minority share but he did make an unsuccessful attempt to secure investment from them. The Texan has also made at least one more approach to another potential investor, but that has also so far come to nothing. Hicks has good reason to seek investment, with just four months to go before the £350m loan secured against the club is due to be refinanced and borrowing has become even more fraught with difficulty. Financial experts believe the bombshell that hit the US stock markets and banking industry yesterday will make the effects of the current credit crunch even greater, and longer lasting, with opportunities to borrow being further reduced. The situation is further complicated by the fact that shares in American investment bank Wachovia were among the hardest hit in yesterday's stock market nosedive. Shares in Wachovia - the fourth largest US bank - fell by 22% in the day as investors’ anxiety about the American financial sector and banks in particular hit the stock market. Wachovia were involved in the last refinancing deal secured by Hicks and Gillett, along with the Royal Bank of Scotland, who loaned the Americans the bulk of the cash. Should Wachovia Bank require new capital it is a possibility that they could call in some of their existing major loans. Liverpool still a target for Dubai takeover - Liverpool Echo.co.uk

Pretty good explanation: As with debt you can obtain leveraged returns. Lets take the case of a house - you could buy a place for £100,000 either all in cash, or with a mortgage forsay 50% (to make the maths easy) with the mortgage having an interest rate of 5% associated with it. Say in a year you sell the house for £150,000....if you bough the house all in cash then you have £50,000 on your initial investment of £100,000 - so your percentage return is 50%. Now with the mortgage option, you put in £50,000 of your own money, and £50k of the building society - on which in a year you paid £2,500 interest. So over the year your investment was £50,000 + £2,500 = £52,500. You now sell the house for £150,000, pay back the mortgage of 50,000 leaving you with £100,000. Your investment over the year was only £52,500 so the percentage return you made by borrowing money is (50,000/52,500) = 95%... I think my maths was correct - but you get the point...less of your own money you put in the greater your potential returns... Dubai Takeover Back On Perhaps?

At the SoS meeting?

Phew - In that Sheil Mohammed is still interested in us though the saudis are minted, hopefully the glazers hold out

Coop, I've long since thought Dubai would not be this patient regarding taking us over unless they knew what the potential outcome of any refinance was otherwise surely they would be aggressive in getting things done. If RBS dont play ball with yanks or atleast demand gaurantees that are next to impossible for them to meet they will basically be up shit creek They may still have Gillet in their pocket to boot

Thats great article, good stuff from SoS and well done to the Echo.

Stupid question, would this mean LFC is the asset he would be most likely to sell?

Acording to Shanks on rawk: Potential takeover news Having spent this afternoon reading through that TLW thread, what i told the mods and couldn't tell you is mentioned in their takeover thread to do with Hicks and bankrupcy. Now someone else has mentioned it and its out in the open, you can see why i could not say anything the other week. I have not heard anything today, the information i posted yesterday was what i was told last week. As it stands now i have not heard anything, its just gonna b a marathon now rather then a sprint waiting for things to happen now. There is a lot of discussion that needs to take place and the fact DIC need to come closer to the figures G+H want. It was mentioned the fact that other business incentives may be offered. So we just have to see what happens now by holding tight. I really as much as you all do don't ever want my hopes dashed again. Having looked through today what has happened with city, i have a broken heart feeling at the min for some reason and just want the love of my life back at the top with the best of everything. --------------------------------- I know he gets a bit os stick here but imo the lad is genuine

Fair play to the Echo, this needed to be said, these 2 parasites will bleed the club dry if they are allowed to continue. Like him or loathe him I hope Bascombe comes out and massacres them tomorrow as well

Dave, any idea how this will all play out time frame wise, will this force their hand in regards to selling?

--------------------------Reina-------------------------- Carragher---------Skrtel----------Agger-----------Aurelio ------------------Masch---------Lucas------------------ --------Gerrard----------------------------Babel-------- -------------------Keane------------------------------- --------------------------Torres------------------------

End of January is the deadline but that can be extended until June if the owners make a request to the banks (and no reason to think they wont) In the meantime questions of funding for the stadium will need to be answered at the start of October. In essesnce they're going to have show people the colour of their money sooner rather then later ......... money that as of yet they dont have

Coop, on Rawk a couple of posters have alluded Miskelly and Dubai working together on this takeover, is that a possibility?

The problem for is that he writes for a Sunday tabloid and with that brings skepticism b/c of the sensationalist angle most sunday ags bring to the table. If Parry is his main source of info it goes hand in hand that any picture he paints will come from that perspective. The other point is a lot of times he writes something negativw it gets brushed aside like nobodys business simply b/c its Chris Bascombe, notw journo ....... whereas as more then a few times he's turned out to be right. On the other hand what pisses me off about the Echo right now is that no matter how quiet there is shit loads going on behind the scenes at the moment yet there's never anything in the paper, I'm sure TB knows whats going on but it doesnt get mentioned, whats more important, keeping the club sweet or breaking the story to your readers?

I'd take Silva over Barry, he would add to our attacking options and thats what we need. Dave, you think this link with Silva is legit?

From ShanksLegend: People just let me reassure you that it would be a good thing and maybe everyone may get there wish afterall. Those who know, know........... The mods i have spoken to about this are aware of the reprecutions that could happen if I posted here. Therefore until there is anything concrete it will stay behind the walls of RAWK. Am sorry but let me reassure you...... Also i still think the Barry transfer will happen, he will reallly be crucial to us. Barry transfer off ?

He was one of them but there's a thread where atleast 3 or 4 of them who have 'sources' claimed pretty much the same thing

I thought it was somewhat established that Dubai Holdings and not DIC are now the lead vehicle in purchasing the club as under this umbrella they can take a longer term view of the purchase and it allows more patience when looking for the dividend from the investment

Coop, poster on rawk especially and also ynwa are suggesting something is afoot in the way meaningful discussion between the yanks and Dubai, you heard anything?

I do find it a bit strange that DIC make a comment that they will back off until Hicks and Gillet mend their relationshio and in the space of a few months acrimony turns to harmony. I think also the whole thing will kick off again once the stadium finance issue comes up and importantly the re-finance which is either in January or if the yanks want to extend it next June or July

imminent id say Hicks says he's friends with Gillett - European, Business - Independent.ie Hicks says he's friends with Gillett By Bob Bensch and Scott Soshnick Thursday July 17 2008 Liverpool co-owner Tom Hicks says he's ''reconciled'' with partner George Gillett after they fell out amid takeover speculation surrounding the 18-time English soccer champions. Hicks and Gillett have been at odds over the future ownership of the club, which they bought in February last year. Gillett called the partnership ''unworkable'' in March. ''George and I have reconciled,'' Hicks said in an interview before last night's Major League Baseball All-Star Game in New York. ''We've been friends for a long time. I think we figured we're better off being friends and working together constructively and not let people in the media kind of drive wedges between us.'' Pat Peeples, a spokeswoman for Gillett, didn't immediately return phone calls seeking comment. Hicks, who also owns baseball's Texas Rangers and the National Hockey League's Dallas Stars, and Gillett, owner of the NHL's Montreal Canadiens, bought Liverpool for $431 million. The two refinanced the purchase with a $682 million loan from two banks in January, leaving the club with a debt of $205 million. The Americans beat out competition from Dubai International Capital LLC to buy Liverpool. Dubai then entered talks to buy a stake in the club before Hicks ended those negotiations in March, saying he would block any attempt by the group to get a minority share. Liverpool have won the European Cup - the continent's elite club competition - five times, although they haven't won the domestic league title since 1990. Manchester United have won the Premier League 10 times in 16 seasons. Liverpool were beset by off-field distractions last season. There were disputes over transfers and the future of manager Rafael Benitez. Hicks also asked club Chief Executive Officer Rick Parry to resign, which he refused to do. The Americans were also subject to fan protests about the increased level of debt since they took charge and came under fire for what supporters saw as insufficient support for Benitez. ''We've gotten a little smarter,'' Hicks said. ''We've only owned it a year. It takes some time.'' (Bloomberg) - Bob Bensch and Scott Soshnick

Its sounds like a huge game of brinkmanship to me, looks like Gillet is trying to slime his way into getting a huge a profit as possible, from the sounds of things they need DIC to be there acting as a stalking horse. I think both the yankee bastards would wet themselves if they suddenly walked away

kaizer, I like most appreciate your posts mate, just ignore the pedantic childish minority, its just penis envy

The logic just doesnt stand up up especially under current economic climate