DIC denies Liverpool deal sealed

SALE DENIED: DIC said it had yet to finalised an agreement to buy a stake in Liverpool FC. (Getty Images)

Dubai International Capital (DIC) on Monday categorically denied it has bought a stake in Liverpool FC, following reports a deal had been reached over the weekend with one of the club's two American co-owners.

However, DIC did confirm it was in "advanced discussions" with George Gillett and Tom Hicks, but stressed that no agreement had been finalised.

The UK's Daily Telegraph reported on Sunday that Gillett had agreed to sell 49% of the football club for an estimated 170 million pounds ($342.9 million), quoting the lead negotiator on the deal.

“Dubai International Capital states that contrary to recent press reports, it has not bought a stake in LFC (Liverpool FC),” DIC said in a statement.

“Dubai International Capital confirms that it is in advanced discussions with the co-owners of LFC but that no agreement has been reached on price or shareholding percentage."

Under the deal cited by the Telegraph, Gillett will sell 1% of his 50% stake to Hicks, giving him a majority holding of 51%, and the remaining to DIC.

Amanda Staveley, head of PCP Capital Partners, told the newspaper that although the sale has yet to be finalised, Gillett has agreed in principle to the deal.

"The legal documents have yet to be signed, but we're really pleased. Of course we want to own Liverpool outright but this large stake is a great start," Staveley was quoted as saying.

Hicks and Gillett last Wednesday rejected an $800 million bid from DIC for the whole club, which would have included paying off the refinancing package the Americans agreed in January for the loan used to purchase the club.

The pair rejected the offer after DIC reportedly gave the owners 24 hours to decide.

The rejection came after DIC Chief Executive Sameer Al-Ansari said it was in talks to buy the club, but that the owners were in “dreamland” over valuations.

Hicks and Gillett outbid DIC when they bought the club last year, but have fallen out with each other this season.

Dubai still bullish about Liverpool takeover
DIC says it will end up as owner of club despite $800mn offer rejection, report says.

Gillett agrees to sell Liverpool stake to Dubai
Co-owner to sell 49% of football club for estimated $343mn, lead negotiator says.

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DIC denies Liverpool deal sealed.
Posted by Lee, Dubai, UAE on 11 March 2008 at 09:28 UAE time


Today we are finding out the deal may be "dead" which is far from being "sealed". May I suggest DIC adopts a "no comment" policy in the future when they are negotiating big deals like this. From the comments Mr. Hicks has made to the press it is clear that he did not appreciate some of the comments made by DIC representatives. Who knows for sure but frustrating Mr. Hicks during the negotiations has appeared to have backfired for DIC's management. From a money/business point of view there is no reason this deal should not have been approved, therefore it seems to me that Mr. Hicks may have canceled the deal because he did not want DIC to have what they want. Sometimes keeping quiet is the best practice until contracts are signed and deals are really done!

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