Takeover Rumours Pressure Liverpool Owners to Sell
Tom Hicks and George Gillett Jr. came under further pressure to sell their shares in Liverpool on Tuesday as the seventh-richest man in the world denied rumours he bid to pay off the club’s debt of £237million for a 51 per cent stake at Anfield.
Mukesh Ambani, of Ambani Reliance Industries, was reported by The Times to be the second billionaire from the sub-continent to compete for a stake in the Merseyside club, following a similar bid from Subrata Roy, chairman of The Sahara Group.
Liverpool chief executive Christian Purslow denied knowledge of either bid and Reliance spokeswoman Sudeep Purkayastha said: “There is no truth to the report. We deny it completely.”
Sahara spokesman Abhijit Sarkar meanwhile said: “We are presently not in a position to comment.”
Speculation of a takeover at Liverpool is however rife after Liverpool’s bank, The Royal Bank of Scotland, stipulated owners Hicks and Gillett pay off £100million of the club’s debt, and inject tens of millions into the club to stabilise finances.
The stipulation from RBS, coupled with investors’ reluctance to take minority stakes in the club, has led to the battle for ownership at Anfield.
Owners Hicks and Gillett initially took the Anfield helm with a leverage buyout costing £300million three years ago, including £70million for a stadium which has not yet been built.
They then broke their promise to supporters not to load further debt onto the club with a £350million loan from RBS, which they have struggled to service since the credit crunch began.
Hicks and Gillett are rumoured not to want to accept any bid leaving them with less than a 50 per cent controlling share of the club, unless it involved either of them selling out entirely. The duo are also rumoured to be reluctant to lower their asking price – blocking all current deals.
RBS may be forced to help resolve ownership of the club as they push for Liverpool to service their debt to the bank.
A buyout may make some funds available for the Liverpool manager – if not to strengthen the team, then to hold on to current squad members.
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