Dubai abandons Liverpool takeover

Dubai International Capital’s takeover of Britain’s Liverpool Football Club was abandoned today. The investment firm reacted decisively following a decision by the club’s board to delay its formal acceptance of DICs bid and give itself time to consider a rival offer from George Gillet – the billionaire owner of Montreal Canadians ice hockey team.

The Liverpool board, under chairman and owner David Moores, earlier in the day said it expected to make a decision by the end of the week, paving the way for work to start soon afterwards on building a new stadium for the club.

Liverpool FC’s delayed decision stunned DIC, which had already completed due diligence on their bid, believed to be worth $160 million for Moores’ 51.6 per cent majority shareholding early next week. Gillet had made a higher offer, valuing Moore’s shares at almost $175 million, before Christmas. But Liverpool’s board rejected it at the time.

Moores, it was believed, had reached agreement with DIC – the investment arm of the Dubai government – on a deal that would see them purchase shares for around $310 million, assume $160 million of debt and fund a new 60,000-seater stadium.

Just three days ago, DIC Executive Chairman Sameer al-Ansari, said that he expected there to be no last minute hitches. “I understand [Gillett] offered 5,000 pounds a share, while we offered 4,500 pounds a share. We are very confident the club won’t consider the other offer,” he said in an interview at the World Economic Forum in Davos, Switzerland.

Today, Al Ansari reacted with barely concealed fury at the Liverpool board's behaviour. "We are very disappointed to be making this announcement. DIC is a serious investor with considerable resources at its disposal. At the same time, we are supporters - of the game and of the club.

"Liverpool's investment requirements have been well publicised and, after a huge amount of work, we proposed a deal that would provide the club with the funds it needs, both on and off the pitch.

"We were also prepared to offer shareholders a significant premium on the market price of the shares. However, we will not overpay for assets," he said.