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Dubai: Dubai International Capital is very much active in its bid for English soccer club Liverpool, despite reports that one of the American owners has rejected its offer, investment banking sources said yesterday
DIC - the private equity arm of Dubai Holding admitted on Tuesday that it was in talks with American co-owners Tom Hicks and George Gillett to acquire their stakes in Liverpool - however said they differed with them over valuation.
"With Gillett showing interest in selling to DIC, it is a matter of persuading Hicks to agree on a price acceptable to both parties. It could be a matter of time and flexibility in negotiations," a person familiar with the situation said.
Accepting DIC's reported £400 million ($795 million) offer would mean both Hicks and Gillett would make profits of £25 million each. While Hicks has not formally rejected DIC's offer, he has the option to buy out Gillett. Under the terms of their co-ownership agreement, neither party can sell his stake to a third party without the approval of the other.
DIC admitted on Tuesday that the negotiations are moving at a slow pace due to some differences on valuation. "It's not easy because the owners are in dreamland about valuations at the moment," Sameer Al Ansari, chief executive of Dubai International Capital (DIC) said on the sidelines of the Private Equity International Forum in Dubai. Al Ansari later said one of the club's owners "had come out of dreamland".
History
Who owns the club
- Club is founded at Anfield in March 1892 by John Houlding.
- The club's ownership changes hands and has been owned for more than 50 years by the Moores family.
- In 2004 chairman David Moores hinted he might relinquish some of his 51 per cent stake, setting the ball rolling for bids.
- Thaksin Shinawatra, then Prime Minister of Thailand, makes a $100 million bid for 30 per cent of the club, but backs out in May 2004 when local construction magnate Steve Morgan steps in with a rival bid.
- DIC makes its first bid in 2006 but drops the bid when Liverpool asks for more time to consider a rival offer.
- The club agrees in 2006 to be taken over by US sports tycoons George Gillett and Tom Hicks for £174 million.
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