Chinese on the verge of walking out on Liverpool takeover deal
Tony Evans, Football Editor, Helen Power, Business Correspondent
Exclusive
The Liverpool takeover saga was plunged into crisis last night when Kenny Huang delivered a take-it-or-leave it message to Martin Broughton.
Huang, the Hong Kong-based businessman, has grown frustrated by what he perceives as delaying tactics by the Liverpool chairman and will walk away unless the Chinese bid is accepted.
Despite Liverpool’s assertions that there are other bidders, Huang believes that his offer is the only viable one on the table. Senior members of the hierarchy at Liverpool have also expressed concern at the pace of the sales process.
After the Chinese interest was revealed in these pages two weeks ago, Broughton said that he expected the club to be sold by the end of last week. However, the deadline passed with Anfield sources claiming that there were still as many as five bids. Huang — who has China Investment Corporation, one of the world’s biggest sovereign wealth funds, among his backers — believes that this is a ploy to push up the price.
Liverpool have suggested that Huang has not offered proof of funds but The Times understands that the Chinese bid has supplied all the necessary documentation required by the memorandum of sale, a legal framework for potential buyers.
A source close to Royal Bank of Scotland (RBS) — which is owed £237 million by Tom Hicks and George Gillett Jr, Liverpool’s owners — said last night that Huang was “there or thereabouts” on providing proof of funding to Barclays Capital, the investment bank brokering the deal. The Chinese offer would make the club debt-free and also bring large-scale investment as part of a total outlay of about £800 million.
Huang is eager to complete the deal before the transfer window closes. The Chinese are concerned that without investment in the squad Liverpool could finish outside the top four this season and want to be in place to provide funds for Roy Hodgson, the manager, as quickly as possible.
Huang has a transfer war chest and has put aside cash to build a new stadium. The Chinese will not dip into these budgets to increase their offer and benefit Hicks and Gillett at the expense of investment in Anfield.
Huang’s stance will heap pressure on Broughton. The chairman of British Airways was brought into the club in April to oversee the sale. The 63-year-old arrived at Anfield with impeccable credentials in the City. However, Broughton has struggled to fulfil this role and is in danger of damaging his reputation.
RBS believes that Huang has the most credible bid and played down the notion of five potential buyers. Sources close to the bank said it was possible that GameDay, the Montreal-based group behind Yahya Kirdi, the Syrian businessman, may become a serious contender if it can show proof of funds.
Rhône Capital, the American private equity group, is still in discussions with Barclays Capital but has not been able to raise sufficient funds to bid.
It has also emerged that RBS could, if necessary, seize control of Liverpool without putting the club into administration, a move that would result in an automatic nine-point deduction by the Premier League.
The bank has been charging Hicks and Gillett £2.5 million a week in penalty fees and could threaten to pursue the Americans for the money if they fail to hand over the keys to Liverpool as part of a debt-for-equity swap.
Other options would include removing Hicks and Gillett from the club’s board.
http://www.thetimes.co.uk/tto/sport/football/article2692843.ece
