Liverpool FC Forum

by **Reg** » Tue Aug 24, 2010 9:30 pm

Scottbot wrote:Overseas buyer considering Liverpool FC takeover after completing due diligence by Richard Buxton. Published Tue 24 Aug 2010 14:58, Last updated: 2010-08-24
Keith Harris, the former Football League chairman, claims that a foreign investor he is representing has completed due diligence with a view to buying Liverpool.

Harris has previously been involved in takeovers at Aston Villa, West Ham United and Manchester City, where Thaksin Shinawatra enjoyed a brief spell as owner, as well as previously acting on behalf of the Al Khorafi family, who attempted to buy the Reds in 2008.

Chinese businessman Kenny Huang became the latest investor to withdraw his interest in Liverpool last week and whilst Harris has refused to name the mystery bidder he represents, he insists that it is none of the groups who have been previously named.

"The overseas buyer we represent has completed due diligence. A huge amount of work has been done," he said.

"It is none of the groups mentioned in the press. The ball is now in our client's court to make an offer.

"I do not think the deal will be done before the transfer window closes this month but the next pressure point is October when some of the RBS loan of £237million has to be repaid. It may happen then. But in the present climate these things are impossible to predict."

With the Royal Bank of Scotland, the Liverpool's primary lender, are expected to recall their loan on October 6 co-owner Tom Hicks is on the lookout for $230million financing, according to a Securities and Exchange Commission filing in the United States.

As usual there's spin all over the place.

The mystery partner has done due diligence so T&T are fully aware of the interest.

Harris says its not going to happen soon (which will cost T&T 2.5 million a week until it is) so there's the first torpedo, and talking of waiting until October 6th making it loud and clear to T&T they're in the driving seat and willing to squeeze their pips. So indirectly they're putting pressure on T&T to accept their terms without delaying further.

Hicks counters via the rights issue.......... :rasp

Same old, same old... Kenny out, Orville in.

by **Cool Hand Luke** » Tue Aug 24, 2010 9:33 pm

Keith Harris: Selling a club for £500m is a tricky business

Keith Harris is locked in negotiations that could bring the reign of Liverpool's unpopular American owners to an end but his experiences over the past year tell him not to get too excited.

The former Football League chairman has seen deals for Everton and Newcastle collapse in bizarre circumstances and was also a leading light in the failed bid to oust the Glazer family from Manchester United.

A previous attempt to wrest ownership of Liverpool from George Gillett and Tom Hicks for a Kuwaiti he dubbed "The Man in the Sand" also collapsed at the 11th hour so Harris is not about to get carried away as talks progress with the group his investment firm Seymour Pierce has been advising.

"The overseas buyer we represent has completed due diligence. A huge amount of work has been done," he says of a deal that would cost between £400-500million.

Neither was the 57-year-old particularly concerned that months of hard work were threatened by Kenny Huang's attempts to install himself at Anfield, allegedly with the help of the Chinese government.

It came as no surprise when the businessman abandoned his takeover last week. "The Chinese government involvement was always a bit far-fetched," he says.

"In any takeover situation, when people resort to announcing it to the media, you have to question the seriousness of the offer.

"If the name of the prospective buyer comes out before the deal is done then probably it is never going to be done.

"Look at when Chelsea was sold in 2003. My firm was advising the club and we only knew of Roman Abramovich on the Thursday before the deal was completed the following Tuesday."

Harris will not disclose the name of the buyer he is now advising but says: "It is none of the groups mentioned in the press.

"The ball is now in our client's court to make an offer. I do not think the deal will be done before the transfer window closes this month but the next pressure point is October when some of the RBS loan of £237m has to be repaid. It may happen then. But in the present climate these things are impossible to predict."

Harris has played his part in takeovers at Premier League clubs Aston Villa (Randy Lerner), West Ham (Eggert Magnusson) and Manchester City (Thaksin Shinawatra) and, two years ago, he was working for another would-be buyer, Nasser Al Khorafi, a member of the powerful and clan-like Kuwaiti family interested in acquiring Liverpool.

Khorafi has been mentioned again as a possible buyer but, in 2008, this long- standing Liverpool fan was so keen to keep his name a secret that Harris was involved in cloak-and-dagger secrecy.

"I had to give Khorafi a pseudonym, 'The Man in the Sand' and Liverpool were identified as 'The Target'. After being vetted, I had to travel to a hotel in Lebanon's Bekaa Valley. For a time, I was the only guest. Then The Man in the Sand turned up."

Getting the American owners, who were then barely on speaking terms, together was also not easy.

"They met in Montreal under the auspices of the commissioner of the National Hockey League, who acted as a sort of referee," says Harris.

"The Man in the Sand eventually met Gillett and his son, Foster, when they came for tea at my Chelsea home. "

Khorafi agreed to pay £300m for the equity with an additional £100m depending on Liverpool's financial performance. But then, two hours before the deal was due to be signed, Harris received an email saying the buyer had changed his mind.

"He just lost his appetite," says Harris. "No explanation was forthcoming."

Harris was unable to contact Khorafi and eventually instructed lawyers to recover his fees. The collapse of deals for Everton and Newcastle proved equally frustrating.

"In the case of Newcastle it was a funded offer which was then declined by the owner," says Harris.

Mike Ashley, the Newcastle owner, wanted £100m and, reveals Harris, "the offer by Barry Moat wasn't very much lower". So having put the club up for sale and with many Toon supporters keen to get rid of him, why did Ashley reject popular local businessman Moat? "All I can say is the offer didn't hit his target."

And Everton? "Ah," says Harris, with a sigh. "There the would-be buyers, both of them British, turned out to be very flaky. When they had to show up with the money, they disappeared. They led everybody a merry dance."

Harris says the difficulty in finding suitable buyers for the country's leading clubs is because "wealth has shifted very substantially away from the West and resides in the Middle-East and in the economic boom countries of the world - China, India and South-East Asia."

He adds: "The Premier League is a great brand but owning a football club is not a must. It's like the second or third home, the yacht or the private plane - a trophy asset. The Manchester City phenomenon [the club was purchased by Abu Dhabi businessman Sheikh Mansour, who then cleared their debts] was exceptional and it is not easy to see it being repeated."

The one takeover Harris would love a third crack at engineering is that of his beloved Manchester United, a club he has supported since he was six.

He concedes that hopes of the Red Knights, of which he was a member, buying it from the Glazers are dead. "Their interest in buying remains undiminished but the Glazers gave very clear and loud signals that the business was not for sale. And for the time being that is the end of it," he says.

The Glazers' opposition meant that the Red Knights never made an offer, or even had a meeting with them. The sticking point was the price. "The Glazers would want £1.5billion," claims Harris. "The Red Knights would have been prepared to go up to a billion."

He says the Knights had 30 eager investors, each prepared to contribute a minimum of £10m - "They said: 'Yes, we'd like to be a part of this'."

They were prepared to invest in Manchester United despite the club owing £800m - and this included interest rates on some of the debt which increase the longer the money is not repaid.

Against that background Harris insists: "It's important that people don't overpay in this environment."

Was it not a problem that the Red Knights' effort was never supported by the most important man at Old Trafford, Sir Alex Ferguson?

As I mention the manager's name Harris goes very quiet. "Um, what you have to say is that Alex has been hugely successful and part of that success is being a very loyal, senior member of the team and you wouldn't expect anyone in his position to say anything different from what he said."

Did the Red Knights try speaking to Sir Alex? "I don't - I don't really want to go down that path," says Harris, adding: "Football clubs don't enjoy success without a break, it has never happened. Manchester United's success in this era has lasted 17 years, which is longer than most.

"But clearly there is more competition coming with Chelsea and Manchester City and Alex has to contemplate retirement. The protest against the Glazers is about the debt they have put on the club and a fear over what happens tomorrow rather than a condemnation of what has been happening until now."

But even if the Glazers had been prepared to sell, was not the Red Knights' concept flawed as David Gill, United's chief executive, suggested? How can any football club, let alone one the size of United, be run by a committee?

Harris, surprisingly, agrees with Gill. "No one can deny that. You can't have seven or eight people making decisions. What you can have is an agreement on policy issues. But nobody in the Red Knights' group suggested that David Gill should not be running the club after a takeover."

The saga also marks a remarkable change in Harris's relationship with United fans - from villain to trusted adviser. In 1998 when Rupert Murdoch's Sky bid for the club, Harris was advising the United board and was anathema to the fan groups opposing the bid.

"The fans took against me then," he admits. "It was in part a lack of understanding of what is required of a financial adviser. The duty of a financial adviser of a public company is to advise shareholders whether the terms that are offered are fair and reasonable. And the price of £650m offered by BSkyB was a fair one, a huge offer."

Harris began to work his passage back with the fans when, in 2005, he tried to stop the Glazer takeover by organising an alternative fans buy-out with the help of investment bankers Nomura.

"On paper, something like 15 or 17 per cent of the shares were in the hands of fans, a mighty amount in terms of defending a takeover. But they were in the hands of thousands of supporters and a lot of them, to be blunt, wouldn't really understand the mechanics of the takeover. Although we tried hard, against a public company takeover timetable, it just proved impossible. Had there been three or four major shareholders representing 10 or 15 per cent of shares, then something could have been done."

But while Harris now cannot praise the fan groups organising the anti-Glazer protest enough, his advice to them is that, if they want the Glazers out, their protests must be more than just an emotional one.

"Waving the green and yellow colours of Newton Heath is very evocative. But do they persuade the owners that they ought to be selling? I would say categorically, 'No'. If you are serious about change then you have to vote with your feet or your credit card. If you are a season-ticket holder and you don't renew you are protesting.

"Then you are hurting them and if you really want change, that's the way to do it."

But even Harris cannot be sure how long the hurt will have to continue before the Glazers could be forced to vacate Old Trafford.

by **lakes10** » Wed Aug 25, 2010 9:13 am

well i am back online in my new house.
so whats been going on with this takeover in the 8 days i have been off.....oh thats right :censored:

all.
kenny as i sid he would have not taken over the club...unlike what some guy from RAWK said he would.

not sure how all this is going to end but the fear that one of our owners with try to buy the other out or get at 3rd party looks to be very real.

by **Ben Patrick** » Wed Aug 25, 2010 10:11 am

lakes10 wrote:well i am back online in my new house.
so whats been going on with this takeover in the 8 days i have been off.....oh thats right all.
kenny as i sid he would have not taken over the club...unlike what some guy from RAWK said he would.

not sure how all this is going to end but the fear that one of our owners with try to buy the other out or get at 3rd party looks to be very real.

Wow one of your million predictions come right

It would be the obvious one that anyone could have predicted as well though wouldnt it. With all the false dawns we have i mean.

by **Scottbot** » Wed Aug 25, 2010 11:07 am

lakes10 wrote:well i am back online in my new house.
so whats been going on with this takeover in the 8 days i have been off.....oh thats right all.
kenny as i sid he would have not taken over the club...unlike what some guy from RAWK said he would.

not sure how all this is going to end but the fear that one of our owners with try to buy the other out or get at 3rd party looks to be very real.

You're not one to brag when one of your many predictions comes right eh Lakes!?

I predict the sun will come up tomorrow morning, just you wait and see. And i'll be back to say I told you so in the morning if it actually happens!

by **boodiddy1** » Wed Aug 25, 2010 12:16 pm

im off to rawk for while now that nugget is back! I told you so!

Go and take ur face for a :censored:

lad. This topic will become the the fakes show again.

by **Ciggy** » Wed Aug 25, 2010 2:43 pm

Everyone get the email sent NO RE FINANCE FOR HICKS & GILLETT !!!!

Dear All,

KOPFAITHFUL understands that when the Royal Bank of Scotland granted a six-month extension of the £237m loan with Liverpool Football Club in April, it was on the basis that the club’s American owners Tom Hicks and George Gillett provided firm evidence to RBS by July that they genuinely intend to sell the club.

We were therefore alarmed to read recent reports in the British press claiming without contradiction that the debt as of August 31 will be £282.4m - an alarming rise of 45.4m since April, and that the owners have been trying to refinance their massive debts with rival banks.

It is our belief that messrs Hicks and Gillett have no intention of selling Liverpool FC, and we have discovered that they have approached the following banks to seek refinancing: -

• Beach Point Capital Management
• Halcyon Group
• Blackrock
• Davidson Kempner Capital Management LLC
• Stone Tower Capital LLC
• Trimaran Capital Partners
• DE Shaw & Co
• Avenue
• Centrebridge Partners LP
• The Blackstone Group / GSO Capital Partners LP

We believe that the owners have undermined the sale process and have breached the terms of the refinancing agreement.

We therefore urge ALL supporters to send an email saying NO TO REFINANCE FOR TOM HICKS AND GEORGE GILLETT to the following: -

Stephen.Hester@RBS.com
CC: investor@blackrock.com,
broker.services@blackrock.com,
info@trimarancapital.com,
investorrelations@trimaranadvisors.com,
inquiries@deshaw.com,
recruiting-inquiries@deshaw.com,
media-inquiries@deshaw.com,
irweb@deshaw.com,
kari.elassal@deshaw.com,
donald.goodson@deshaw.com,
fkanga@avenueinvestment.com,
pharris@avenueinvestment.com,
bharris@avenueinvestment.com,
info@centerbridge.com,
hr@centerbridge.com,
fbcmir@fbr.com,
advisors@fbr.com,
media@fbr.com,
mmurray@fbr.com,
fbrresearch@fbr.com,
webproducer@fbr.com,
BlackstoneInvestorRelations@blackstone.com,
info@blackstone.com,
jon.laycock@barcap.com,
john.hourican@rbs.com,
roger.lowry@rbs.co.uk,
rebecca.oliphant@rbs.com,
richard.holliday@rbs.com,
gngillett@bcmgt.com,
ian.ayre@liverpoolfc.tv,
philip.nash@liverpoolfc.tv,
thicks@hicksholdings.com,
tohjr@hicksholdings.com,
martin.broughton@ba.com,
lisa@lemastergroup.com,
rick@lemastergroup.com
Marc.hazleton@Barcap.com,
Schuyler.clemente@Barcap.com,
Maureen.mackman@RBS.com,
kari.elassal@deshaw.com,
fundinfo@deshaw.com,
pharris@avenueinvestment.com,
fkanga@avenueinvestment.com,
Claire-Muldoon@deshaw.com,

by **supersub** » Wed Aug 25, 2010 3:28 pm

just emailed them all...a couple aren't receiving mail at the moment and a further 2 are on holiday

by **Igor Zidane** » Wed Aug 25, 2010 4:24 pm

Done aswell lynds , same as superklink above 2 on holiday and one failure to recieve or summit .

by **jacdaniel** » Wed Aug 25, 2010 4:33 pm

Sent as well.

Shame that not so many people are replying to this thread.

by **Scottbot** » Wed Aug 25, 2010 4:41 pm

Have you guys just copied and pasted the whole thing or personalised it at all? Not sure which was to go about it?

by **Kopite25** » Wed Aug 25, 2010 4:42 pm

Sent to all

by **Igor Zidane** » Wed Aug 25, 2010 4:44 pm

Scottbot wrote:Have you guys just copied and pasted the whole thing or personalised it at all? Not sure which was to go about it?

use this as a template scott , it's of the rattle , just adjust accordingly .

Dear Mr. Hester,

I am e-mailing you as a concerned Liverpool fan, and indeed as a Liverpool fan who has been concerned about RBS' dealings with Liverpool Football Club and more particularly the 'owners' of the club, Tom Hicks and George Gillett for some time.

As a fan I have waited patiently for your bank, owned by the tax-payer to promptly and properly demand back the monies owed to the tax-payer by these two most disreputable football owners in British club history, and yet time and time again it appears that your bank (our bank, the tax-payer's bank) has refinanced their regime and thus perpetrated a moral wrong against a fabled British sporting institution of worldly fame, and its fanbase.

I have noted with interest the numerous presss reports detailing what is known of the current sales process and noted that the same press stories have carried word (not denied) that Hicks and Gillett have approached other banks to attempt to refinance their RBS loans. Furthermore other stories (not denied) have suggested that one of the agents of sale (BarCaps) are considering involving themselves in a refinance of the club with Hicks and Gillett.

I would wish to highlight to you my disgust should any of these eventualities come to pass and my intention should that happen to blame RBS and you personally and to seek to do all I can to have these matters made subject of a public and/ or Parliamentary inquiry. It is widely believed that RBS have the power (and have had for some time) to bring these matters to a head by seizing the security for their loans (Liverpool Football Club effectively) and then effecting a sale at a price that the market can bear. Given that Hicks and Gillett (despite apparently contrary assurances to you) appear not to be ready to sell the club at a price that the market can bear then morally I would suggest that this is the only option at present and an option that should be taken up. RBS will suffer no public backlash from Liverpool supporters for getting rid of Hicks and Gillett in this fashion, quite the contrary.

Please consider this e-mail and others you will no doubt receive from anguished Liverpool supporters and act accordingly.

Regards

by **mighty mo** » Wed Aug 25, 2010 5:02 pm

lakes you are a genius

by **Scottbot** » Wed Aug 25, 2010 5:07 pm

Thanks Igor, all done. Must be important people, there's a lot on that list who don't deal with their own email! Sent it with the title "Important" with receipt + high importance attached.

Please everyone take 5 minutes to do this, I couldn't send it all in one but it doesn't take long to ping the same message out to 20-25 email addresses. These things can only work if the inboxes of these people are literally ruined by the constant influx. That's when it gets noticed, and talked about, and remains in the conciousness of these people who collectively make the decisions that have our club in their hands.

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