Andy Hunter
Friday March 7, 2008 The Guardian
Lawyers representing Tom Hicks intend to travel to Dubai next week to discuss a possible working relationship with Dubai International Capital, one that is based on the Texan's terms as he strives to become the majority Liverpool shareholder.
Anfield's co-owner appeared to soften his stance on the future ownership of the club yesterday when DIC claimed he was willing to meet them and to allow his co-chairman, George Gillett, to sell his 50% stake to the investment arm of the Dubai government for around £215m.
Hicks, however, has not veered from a determination to become the club's major influence and has instructed his lawyers to see whether DIC will reconsider their own ambitions to gain majority control. That is not an offer the Dubai company are currently prepared to accept.
Despite continuing efforts to raise funds for a rival bid for Gillett's investment and the power of veto over any sale to a third party, Hicks has indicated to DIC that he would allow his co-owner to sell them his stake, though only 49% or less. The leverage buyout expert is seeking a minimum 51% holding in Liverpool and remains resolute in his insistence that any new shareholder coming into the club would have to accept a minority stake.
The American's hardline stance continues to present a fundamental obstacle to DIC's intentions and the company will have to increase its £200m offer for Hicks' 50% before the co-chairman even reconsiders his position. DIC are also becoming increasingly exasperated by Gillett, and next week's meeting in Dubai is unlikely to go ahead unless he has finally accepted their bid for his 13-month investment.
Gillett has been offered a £40m profit on his 50% stake as a premium for dissolving his business relationship with Hicks and thereby allowing DIC to exert pressure on Hicks to follow suit. Over two days have now passed since Gillett was given a deadline to accept or reject DIC's package, however, and he has not given a decision.
DIC's representatives are continuing to work on a deal with Gillett's lawyers and are exploring ways for him to sell without his co-owner's permission, but until the sports tycoon agrees to sell there is no working relationship for Hicks and DIC to discuss.
Hicks has no plans personally to meet Amanda Staveley of private equity firm and DIC's advisors, PCP Capital Partners, and will have 90 days to lodge a formal rival offer for Gillett's shareholding should he block any attempt by his co-owner to sell his 50%. Although DIC remain confident a deal can eventually be struck with the Americans they may have to revise their intentions for Liverpool should the current impasse continue.
Anfield's co-owner appeared to soften his stance on the future ownership of the club yesterday when DIC claimed he was willing to meet them and to allow his co-chairman, George Gillett, to sell his 50% stake to the investment arm of the Dubai government for around £215m.
Hicks, however, has not veered from a determination to become the club's major influence and has instructed his lawyers to see whether DIC will reconsider their own ambitions to gain majority control. That is not an offer the Dubai company are currently prepared to accept.
Despite continuing efforts to raise funds for a rival bid for Gillett's investment and the power of veto over any sale to a third party, Hicks has indicated to DIC that he would allow his co-owner to sell them his stake, though only 49% or less. The leverage buyout expert is seeking a minimum 51% holding in Liverpool and remains resolute in his insistence that any new shareholder coming into the club would have to accept a minority stake.
The American's hardline stance continues to present a fundamental obstacle to DIC's intentions and the company will have to increase its £200m offer for Hicks' 50% before the co-chairman even reconsiders his position. DIC are also becoming increasingly exasperated by Gillett, and next week's meeting in Dubai is unlikely to go ahead unless he has finally accepted their bid for his 13-month investment.
Gillett has been offered a £40m profit on his 50% stake as a premium for dissolving his business relationship with Hicks and thereby allowing DIC to exert pressure on Hicks to follow suit. Over two days have now passed since Gillett was given a deadline to accept or reject DIC's package, however, and he has not given a decision.
DIC's representatives are continuing to work on a deal with Gillett's lawyers and are exploring ways for him to sell without his co-owner's permission, but until the sports tycoon agrees to sell there is no working relationship for Hicks and DIC to discuss.
Hicks has no plans personally to meet Amanda Staveley of private equity firm and DIC's advisors, PCP Capital Partners, and will have 90 days to lodge a formal rival offer for Gillett's shareholding should he block any attempt by his co-owner to sell his 50%. Although DIC remain confident a deal can eventually be struck with the Americans they may have to revise their intentions for Liverpool should the current impasse continue.
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