GFH Capital said to face competitor in efforts to take over English football club
A second bid to buy English football club Leeds United could be tabled later this month if Dubai-based GFH Capital fails to complete its takeover, it was reported on Wednesday.
A new takeover proposal backed by Saudi Arabian money is due to be made in the next three weeks if the Championship club hasn't been bought by then, the Yorkshire Post reported.
It said that the Saudi group plan to approach United owner and majority shareholder Ken Bates before the start of December if GFH Capital’s buy-out remains incomplete.
According to sources at GFH Capital, the company was hopeful of concluding its takeover this week, the UK newspaper added.
GFH Capital is currently protected by an exclusivity clause negotiated with Leeds in June but that agreement is set to end.
A source involved with the proposed Saudi bid told the paper: “It’s a very credible alternative. They’ve got more than enough money to buy Leeds and if that doesn’t happen then I’d expect them to buy another major English club.”
The source said the group would most likely provide “substantial bridging funding” to assist United in the January transfer market and support the club through the rest of this season.
GFH Capital is a unit of Bahrain's Gulf Finance House which on Sunday posted net profit of $7.5m in the first nine months of 2012.
In a statement, the bank said its net earnings had grown from $4.1m in the same period last year.
However it added that net profit for the third quarter of 2012 fell to $1.8m compared to $3.4m in Q3 2011.
Last month GFH Capital issued a statement after questions were raised in UK media about whether it had the capability to finance the deal to buy the football club.
A later statement issued earlier this month said the deal would be concluded "very soon".