by DZed » Thu Feb 01, 2007 1:47 am
Liverpool in limbo as Dubai group pull out of Anfield deal
By Nick Harris
Published: 01 February 2007
Liverpool's plans to become a debt-free club in a new stadium under the ownership of one of the world's richest men lay in tatters last night after Dubai International Capital sensationally withdrew from advanced talks about a £450m takeover package in disgust at the club's handling of its offer.
That leaves the American entrepreneur, George Gillett Jnr, in pole position to take over at Anfield. The details of his bid have yet to be made public, but Liverpool's current shareholders will certainly make more money personally from selling to him. His willingness to fund a new stadium and his ability to invest in the club or players is less clear.
A Liverpool spokesman said: "There is a process under way with Mr Gillett Jnr, and a decision can be expected in the next few days." The DIC deal was all but signed. DIC and Liverpool had already agreed the wording of a joint statement to announce the takeover next Monday.
But after a meeting between Liverpool's chairman and majority shareholder, David Moores, and a group of other shareholders and board members on Tuesday evening, Liverpool decided to reconsider another offer from Gillett. Having made a verbal agreement with DIC, Liverpool effectively opened the floor for a bidding war, one that may yet go down in history as one of the costliest own goals in the club's history.
DIC was not informed that Tuesday's meeting would discuss Gillett Jnr. This infuriated DIC executives, who tried but failed to find out what was happening, and they made a unilateral decision to pull the plug on Liverpool yesterday.
DIC had offered £4,500 per share for Liverpool's stock, which is 51.1 per cent owned by Moores, in a deal worth £157m to shareholders. In addition it promised to write off the club's £80m debt and build the new £200m Stanley Park stadium, with work due to start as early as March. Moores would have been guaranteed a role as honorary president while the chief executive Rick Parry's job would also have been safe. DIC sources had also made it clear substantial transfer funds would have been made available.
Gillett Jnr has apparently offered £5,000 per share, meaning an extra £17m in total into shareholders' pockets, including an extra £8.5m for Moores. Although he has said previously that he wants to share a stadium with Everton, he has given written assurances that a ground-share is not in his plans. No timetable is in place. No detail about debt-clearance or transfer funds has been made public. Nor has Gillett Jnr made it clear how his bid would be funded. Loading Liverpool with debt, as Malcolm Glazer has done at Manchester United, is an option.
It is understood that Moores came under pressure from "minor shareholders" (who own almost 49 per cent of the club) to consider the bigger cash offer for them. It is understood Gillett Jnr may now try to combine forces with Steve Morgan, Liverpool's third largest shareholder who made his fortune from Redrow homes, to buy the club. Moores and Parry would be unlikely to have any role in a Gillett Jnr regime.
DIC's chief executive, Sameer Al Ansari, a Liverpool fan, said: "We are very disappointed. DIC is a serious investor with considerable resources. After a huge amount of work, we proposed a deal that would provide the club with the funds it needs."
DIC is an offshoot of the business empire controlled by Sheikh Mohammed bin Rashid al-Maktoum, who is worth £7bn and has family assets of double that.
Who is George Gillett Jnr?
George Gillett Jnr, 68, has amassed a fortune estimated at 440m pounds primarily through meat production, but his business portfolio also includes car dealerships, ski resorts and gardening products.
His business career began as a management consultant with McKinsey & Company and through his work there in the 1960s he became owner of the NFL's Miami Dolphins, who he later sold.
He was also the owner of basketball's Harlem Globetrotters and he currently owns the NHL's Montreal Canadiens. Any Liverpool takeover deal would require debt or business partners in order for him to fund it.
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