Helen Power, Business Correspondent, Matt Hughes, Patrick Kidd
Liverpool emerged as a takeover target for the seventh-richest man in the world last night as the pressure mounted on Tom Hicks and George Gillett Jr to cut a deal to sell Anfield.
Mukesh Ambani, the wealthiest man in India, is one of two tycoons from the sub-continent competing to buy a stake in the Merseyside club.
The Sahara Group’s chairman, Subrata Roy, and Ambani’s Reliance Industries have each tendered similar bids to pay off Liverpool’s £237 million debt in return for a 51 per cent stake in the club.
Last night Christian Purslow, the Liverpool chief executive, denied any knowledge of either bid, but The Times understands that approaches began as early as November and that some preliminary talks have taken place.
Each deal requires that the present owners make a commitment to take no dividends or expenses out of Anfield for three years to allow the club to resume a secure financial basis. One of the potential owners has also indicated a willingness to allow supporters to take a 10 per cent stake in Liverpool.
A source close to Hicks and Gillett said that the duo would reject on principle any bid that left them with less than 50 per cent of the club’s shares unless it involved either of them selling out entirely. A sale of more than half of the total stake would mean they would lose control of the club.
It is understood that Liverpool’s banker, the state-backed Royal Bank of Scotland, is pressing Hicks and Gillett to cut their asking price.
The bank declined to comment last night, but a source close to RBS said that there has been plenty of interest in Liverpool from investors. However, the source added, the owners are blocking all deals on the table because they refuse to budge on price.
The source said the bank’s stipulation that the pair must pay off £100 million of the debt and inject tens of millions of pounds into the club was intended to push them into an agreement with a new investor that would permanently stabilise Liverpool’s finances.
A number of other potential bidders include a Saudi Arabian consortium and a United States-based buyer, who is prepared to pay the £100 million required by the lenders in exchange for 40 per cent of the club.
Roy, whose interest appears more serious, has been linked with ownership of one of the next IPL franchises, possibly to be based in the north Indian city of Lucknow, where the Sahara Group, of which he is chairman, is based.
Roy, 62, founded the company, which deals in property, media and tourism, in 1978. Its four-year sponsorship deal with the India cricket team, worth £55 million, expires this year and Roy could be looking for a new project. Sahara was linked with shirt sponsorship of Manchester United last February, a deal that fell through.
Ambani, 52, is said to be worth $19.5 billion (about £12.5 billion) — more than the combined worth of Sheikh Mansour and Roman Abramovich — from his investment in Reliance Industries, a petrochemicals giant, according to Forbes business magazine.
His father, Dhirubhai, turned a small textiles company into one of Asia’s largest conglomerates, but after Ambani Sr’s death in 2002, Mukesh and his younger brother, Anil, had a bitter feud over the company’s direction, eventually splitting the assets.
Mukesh Ambani is already a big player in sport. In 2008 he created the Mumbai Indians, one of the eight teams in the Indian Premier League (IPL), having paid £70 million to buy the franchise. Anil Ambani has been linked with a bid for one of two new franchises in the IPL that will be put up for auction at the end of the month, with a starting price of £140 million.
Gillett and Hicks took over at Anfield three years ago in a leveraged buyout costing nearly £300 million, including £70 million for a stadium that remains unbuilt. Despite promises to the contrary, they loaded the debt on to the club via a £350 million loan with RBS and have struggled to service the debt since the credit crunch began 18 months ago.
Before the economic climate changed for the worse, the American duo turned down an offer from Dubai worth almost £500 million — a deal that would have allowed each of the owners to walk away with a clear profit in the region of £125 million.
The Americans are unpopular with the supporters and the hostility at Anfield has increased as it has become clear that there is no money available to strengthen the team.
Purslow, whose background is in private equity, joined the club last summer with a brief to bring in investment but, despite repeated briefings that an influx of cash in close at hand, there has been little to suggest investors are keen to take a minority stake in the club.
While these latest offers will almost certainly be rejected, it marks the beginning of a period of jockeying for position in the ownership battle. It is a battle that, ultimately, RBS may have to resolve.
Mwaka huu na hili timu hadi Mengi naye atataka kutununua... sijui itakuaje
Indian tycoon Mukesh Ambani has swiftly denied reports on Tuesday morning that he has made an offer to secure a 51% stake in Liverpool. GettyImages
Mukesh Ambani has denied making an offer for Liverpool
Described by the Times as the "seventh-richest man in the world", it was reported that Ambani's company Reliance Industries was one of two parties interested in paying off Liverpool's £237 million debt in order to take a large portion of the stake held by Tom Hicks and George Gillett.
Despite suggestions that talks have taken place between the interested parties and the club, Reliance has firmly distanced itself from claims that a bid has been tabled.
"There is no truth to the report. We deny it completely," Reliance spokeswoman Sudeep Purkayastha stated.
However, Subrata Roy's Sahara Group have refused to deny the same report, which named it as the other party to make an offer for the club. "We are presently not in a position to comment," explained Sahara spokesman Abhijit Sarkar.
Liverpool are seeking new investment in the club in order to alleviate debts placed on the club following a leveraged buyout by Hicks and Gillett in 2007.
The adverse economic climate has also seen development on a new stadium in Stanley Park suspended by the club's owners, who remain unpopular with the Liverpool supporters.
Gunners aim to stretch home stranglehold over Reds
Last updated: 10th February 2010
Wenger: Difficult week PREDICTIONS:
Skysports.com prediction: 1-1
One to Watch: Andrey Arshavin
Arsenal and Liverpool meet at Emirates Stadium on Wednesday night in a fixture which would appear to encapsulate what has been a bizarre season both on and off the field.
Gunners boss Arsene Wenger went against his years of experience to deliver a strange rant about the behaviour of the media on Tuesday to give an insight into his frustration at comprehensive, back-to-back defeats to Manchester United and Chelsea.
The successive losses to their rivals have led many to rule Arsenal out of the title race and that has also led their French manager to claim that he is limited by the reality of financial responsibility when compared to other Premier League clubs.
To make matters all the more confusing for Arsenal, an underachieving and hierarchically unstable Liverpool could move to within two points of Wenger's side, who, according to their manager, are still in the title race, if they record a rare win in North London.
Liverpool's main aim for the majority of this season has been to win their fight for a top-four place and a spot in next season's UEFA Champions League, but they will be well aware that a first league win at Arsenal since Titi Camara struck in 2000 would put third position well within reach. Confidence
Reds captain Steven Gerrard knows that his team have rediscovered some confidence after Saturday's 10-man Merseyside derby win stretched Rafa Benitez's side's unbeaten league run to seven games.
But despite the fact that Merseyside eyes are now looking up the table, the Reds skipper has also compared the danger of Arsenal to a 'wounded animal' and his fourth-placed club are also nervous of the threat of Manchester City's games in hand.
The priority for Arsenal is to get a pursuit of Chelsea and United back on track, while also squashing the threat from below, and their dominant home record over Liverpool will breed confidence.
Arsenal will also have the memory of their turnaround victory at Anfield in mid-December when a half-time dressing down from Wenger inspired a 2-1 victory courtesy of a Glen Johnson own goal and a superb strike from Andrey Arshavin.
The Russian has five goals in his last two games against Liverpool after his away-day heroics last season and he will again spearhead his side's attack in the injury absence of long-term victim Robin van Persie and Eduardo.
Physical presence
Nicklas Bendtner could start after coming off the bench against Chelsea to add some physical presence to the frontline, however, Kieran Gibbs (foot) and Johan Djourou (knee) remain unavailable.
Liverpool are again without injury-prone midfielder Alberto Aquilani as the £20million summer signing from Roma is recovering from illness.
Centre-back Sotirios Kyrgiakos starts a three-match suspension after being sent off in the Merseyside derby and is also sidelined for forthcoming games against City and Blackburn.
He is likely to be replaced by Martin Skrtel, who was dropped to the bench at the weekend, as Daniel Agger continues in the centre of defence with Jamie Carragher on the right.
Star striker Fernando Torres (knee), Yossi Benayoun (rib) and Johnson (knee) are not expected to be back in action until March at the earliest.
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we have seen, once again, quality ya refereeing inavyoweza kuharibu brilliant moments in soccer... anyway congrats to arses for taking 6 points from liverpool... we will reclaim them from manure
11th January 2009, 04:06 AM
Re: Liverpool FC, Special thread
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