Pool takeover rumbles on as Syrian emerges as front runner
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Liverpool could be sold before the transfer window closes on August 31, but chairman Martin Broughton insists the final say on any deal is in the hands of the board, including owners George Gillett and Tom Hicks.
Chinese businessman Kenny Huang has expressed his interest in assuming control of the Reds, with suggestions he would seek to acquire the club's £237 million debt from principal lender the Royal Bank of Scotland. Such a move would give him considerable power in a bid to force Hicks and Gillett out.
However, Broughton, who was brought into the club in April to facilitate a sale, revealed there had been "several'' bids for the Reds and insisted the decision over the sale will be made by the Liverpool board members on terms that satisfy them.
"Any bids that go straight to RBS - and there have been several - come to me and are directed to Barcap (Barclays Capital),'' he told the Guardian. "RBS are not involved. The control remains with the board.''
Broughton, who was brought in to oversee the sale process, said it is hoped a deal can go through before the end of the month: "It still remains the objective to conclude a deal before the end of the transfer window. That remains the objective but there are no deadlines, and we will continue working to complete the process. Both George Gillett and Tom Hicks remain on the board and they have given commitments that the board of Kop Holdings (Liverpool's UK parent company) is the party that is responsible for the sale.''
Huang is the head of Hong Kong-based investment company QSL Sports Ltd and is believed to be keen to secure an agreement as soon as possible in order to give manager Roy Hodgson plenty of time to bring in reinforcements before the end of the transfer window.
The Sun reported that Huang will walk away if a deal can't be completed within ten days. The newspaper also claims Huang sent secret envoys two weeks ago to convince Steven Gerrard and Fernando Torres to remain at the club while he proceeded with a takeover. Torres has spoken publicly of his desire to see greater investment in the Liverpool squad and that's something Huang could provide.
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Will the 2 American have the final say? They have defaulted the loan payment and think RBS now has the most right to sell the club.
It is like bank repossessed a house after the occupant failed to service the loan? That was why the Huang went straight to RBS/Barclay to settle the loan I suppose? -
LIVERPOOL NEWS
Investors deem Liverpool shares ''worthless''
George Gillett and Tom Hicks are looking for investment.
Liverpool's potential investors, a Far East Sovereign Wealth Fund that includes Kenny Huang, are looking to secure a takeover of the club at a knockdown price.
The investors intend to use their funds to pay for the new stadium and new players rather than line the pockets of owners George Gillett and Tom Hicks as the shares are "worthless"."The owners will be a Far East Sovereign Wealth Fund of which Kenny Huang will be one of two main partners and owners of Liverpool football club,'' a source close to the talks revealed. "The Sovereign Wealth Fund has been in touch with the Royal Bank of Scotland and the Liverpool board to inform them that they do not value the equity of the company higher than the debt.
"The debt stands at around £350 million and at the moment the valuation is based on between 80p to £1 in the pound, but no more. In layman's terms the shares are worthless, and therefore there is no offer to the current shareholders."
That means that the offer from the Sovereign Wealth Fund is to cover all of Liverpool's current debts, most of which are with the RBS at close to £240 million. A guarantee that RBS will get its money back is extremely appealing to the bank, but not to Hicks and Gillett.
"The problem for the bank is that if this offer is not accepted soon, then the value drops, it drops if it goes past the point where investment cannot be made in new players, and to persuade the best players to stay,'' the source added. "You can understand why Gillett and Hicks would say no, because they want some value from their shares.
"It has been suggested there are alternative bids, but from the Sovereign Wealth Fund's perspective, that's fine. If they do not materialise there is a danger that the financial crisis will depend upon the extent that Liverpool go into distress.
"The new chairman was appointed by the bank as part of their agreement to extend the loan facility, but it has now emerged that the bank can call in part of that loan in October. If Liverpool do not accept this deal which is on the table, then the alternative could be dire, if they cannot find an alternative buyer.
"The board are faced with a stark choice, they could be faced with a sharp dip in valuation of the company, top players leaving and little funds to buy new ones. What this takeover will provide is the funds to start construction on a new stadium which is long overdue. This is crucial. You are not in the game if you do not have a modern stadium.''
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I believed the 2 Americans will have the final say in all this. Why? cos they are still the rightful owners of the club. Therefore, it will need them to agree to it before anyone could buy their club.
And I don't think they have defaulted on their loans... Cos the banks agreed to an extension and are even paid a handsome interest on it.
What this Huang guy have done is trying to buy the club on the cheap... And trying to put Gillett and Hicks under pressure to sell asap. Otherwise why the 10 days period for? The transfer nonsense I don't buy it. I think they are just afraid if it drags longer, people might find out more about them... and the deal probably won't happen. But Gillett and Hicks are very seasoned businessman so they probably won't allow it to happen unless they are pleased with the deal.
I guess it could be a different story if Gillett and Hicks are truly dead broke and the world knows about it. In that case, the banks will be more than happy to see this through and get their money back. But I think most will know that Gillett and Hicks aren't broke... They just have their money park somewhere else that's all. So if it really becomes that bad like the banks pressuring them to sell against their wishes... They might sacrificed their other holdings to prevent the sale if the price is not to their expectations or get another load from a different bank?
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Liverpool takeover saga rumbles on as Syrian Yahya Kirdi emerges as front runner ahead of Kenny Huang
Liverpool's topsy-turvey summer took a twist after a rival consortium to Chinese entrepreneur Kenny Huang are claiming they are close to sealing a deal to buy the club.
Syrian businessman Yahya Kirdi, who represents a group of investors from the Middle East and Canada, has said a price has been agreed and a formal purchase agreement 'is in the final stage of negotiation'.
However, much the same noises were made by Kirdi's representatives in April and no deal was done, and he has been dealing with the American owners Tom Hicks and George Gillett rather through Liverpool chairman Martin Broughton, who has been detailed to sell the club.
Under new rules on club ownership announced by the Premier League yesterday, all prospective owners are obliged to give the league 10 days' notice of a takeover and prove they have the funds to sustain the club.
Liverpool and a number of parties contemplating a takeover - including Huang - have already contacted the Premier League to alert them that a change of ownership could be imminent.
A statement from Kirdi said: 'The group is in advanced negotiations with Thomas Hicks and George Gillett, co-owners of Liverpool Football Club, to purchase 100% of the club.
Boost: Liverpool's Fernando Torres committed his future to the Anfield cause
'Agreement has been reached on all major terms including the purchase price, repayment of the existing bank debt from RBS and Wells Fargo and financing of a new stadium in Liverpool's Stanley Park. A formal purchase agreement between the parties is in the final stage of negotiation.'
Kirdi is a resident of Canada and a former Syria international who oversees investments in Europe and North America on behalf of his investor group, said the statement.
'Liverpool is a massive football club with passionate and proud fans in Merseyside and in every part of the world,' said Kirdi.
Unpopular: The American ownership of Gillett (left) and Hicks has long lost the support of the Anfield faithful
'With additional money to improve the squad and financing in place to build the new stadium, LFC will be on a solid foundation to compete in the Premiership and in Europe for years to come.'
Star man Fernando Torres yesterday offered some hope to the Anfield faithful by committing his future to the club.
Keith Harris, head of investment bank Seymour Pierce, told Sky Sports News there are still other interested parties looking at the club.
History: Liverpool finished a lowly seventh in the Premier League last season and are laden with debt
'All I am prepared to say is we've looked at it very carefully on behalf of would-be buyers, who we know are very serious, we know are cash-rich, we know have the right incentive to do it, the right motivation to do it, and are prepared to take a long-term view,' Harris said.
'I can't say any more at the moment. We have represented a buyer in the past and that is an ongoing situation.'