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Excessive price ends DIC interest in Liverpool
LONDON (AP) - The high price Liverpool's owners are demanding for the club coupled with the global economic meltdown has ended a Dubai investment group's interest in buying out Tom Hicks and George Gillett Jr, The Associated Press has learned.
Dubai International Capital was not willing or capable in the current economic climate of paying the 650 million pound (US$1.2 billion; €820 million) wanted by the American sports tycoons, a financial executive familiar with the situation said on Monday on condition of anonymity because they are not authorized to speak to the media.
The investment vehicle of the Dubai government has been hit by the credit crunch and believes the asking price is excessive. Hicks rejected a 400 million pound (then US$800 million) offer from DIC in March for the English Premier League club burdened with debt since the 2007 takeover.
Interest does remain - if the price is more realistic - from Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum working with PCP Capital Partners, whose senior partner Amanda Staveley was instrumental in the purchase of Manchester City by another UAE investment group, the Abu Dhabi United Group. That deal was expected to be completed this week.
"DIC can confirm that it is not involved in any negotiations to buy LFC and can confirm that it is not planning a fresh bid for LFC or any other football club," the statement read. "Nor is DIC or any other Dubai-based party aware of any consortium or vehicle involved in a bid.
"DIC has not mandated PCP to act for DIC or to act for them in any matter whatsoever. DIC would like to wish LFC and its fans a successful future."
Hicks and Gillett steadfastly refused before Saturday's victory over Manchester United to cede to the renewed protests against their troubled 18-month Anfield reign.
Much of the anger has been sparked by the delays in building a replacement for Anfield as they struggle to fund the project, plus the huge Royal Bank of Scotland loans used to buy the club, which will need refinancing in January in a climate hesitant about supplying credit.
Gillett held talks on Saturday with an influential Liverpool fans group leading the charge to oust Hicks and himself, assuring them that the club was financially sound, and blaming the beleaguered banking sector for the debts.
The Spirit of Shankly group insisted that the meeting would not deter them from stepping up the campaign to ensure the feuding sports tycoons find a buyer.
Until then, SOS plan to target Royal Bank of Scotland and its associated companies for partly financing the Americans' ownership, with the loans used to buy the club due to be refinanced again in January.
SOS emerged from talks to join more than 4,000 fans chanting "Yanks out" and brandishing "Liars out" posters on a march back to Anfield.
The financial frailties have neutered manager Rafa Benitez in the transfer market. He was denied the funds to buy Gareth Barry from Aston Villa and having to settle with Albert Riera for less than half of Barry's proposed 18 million pound (US$36 million; €23 million) fee to strengthen the midfield.
Liverpool vice-captain Jamie Carragher has said he was embarrassed and irritated by the delays in replacing 115-year-old Anfield with a new stadium in the adjacent Stanley Park. The owners blamed the global economic turmoil for stalling the project that was due to open in 2011.
Gillett also owns ice hockey's Montreal Canadiens, while Hicks owns baseball's Texas Rangers and the NHL's Dallas Stars.
Dubai International Capital was not willing or capable in the current economic climate of paying the 650 million pound (US$1.2 billion; €820 million) wanted by the American sports tycoons, a financial executive familiar with the situation said on Monday on condition of anonymity because they are not authorized to speak to the media.
The investment vehicle of the Dubai government has been hit by the credit crunch and believes the asking price is excessive. Hicks rejected a 400 million pound (then US$800 million) offer from DIC in March for the English Premier League club burdened with debt since the 2007 takeover.
Interest does remain - if the price is more realistic - from Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum working with PCP Capital Partners, whose senior partner Amanda Staveley was instrumental in the purchase of Manchester City by another UAE investment group, the Abu Dhabi United Group. That deal was expected to be completed this week.
"DIC can confirm that it is not involved in any negotiations to buy LFC and can confirm that it is not planning a fresh bid for LFC or any other football club," the statement read. "Nor is DIC or any other Dubai-based party aware of any consortium or vehicle involved in a bid.
"DIC has not mandated PCP to act for DIC or to act for them in any matter whatsoever. DIC would like to wish LFC and its fans a successful future."
Hicks and Gillett steadfastly refused before Saturday's victory over Manchester United to cede to the renewed protests against their troubled 18-month Anfield reign.
Much of the anger has been sparked by the delays in building a replacement for Anfield as they struggle to fund the project, plus the huge Royal Bank of Scotland loans used to buy the club, which will need refinancing in January in a climate hesitant about supplying credit.
Gillett held talks on Saturday with an influential Liverpool fans group leading the charge to oust Hicks and himself, assuring them that the club was financially sound, and blaming the beleaguered banking sector for the debts.
The Spirit of Shankly group insisted that the meeting would not deter them from stepping up the campaign to ensure the feuding sports tycoons find a buyer.
Until then, SOS plan to target Royal Bank of Scotland and its associated companies for partly financing the Americans' ownership, with the loans used to buy the club due to be refinanced again in January.
SOS emerged from talks to join more than 4,000 fans chanting "Yanks out" and brandishing "Liars out" posters on a march back to Anfield.
The financial frailties have neutered manager Rafa Benitez in the transfer market. He was denied the funds to buy Gareth Barry from Aston Villa and having to settle with Albert Riera for less than half of Barry's proposed 18 million pound (US$36 million; €23 million) fee to strengthen the midfield.
Liverpool vice-captain Jamie Carragher has said he was embarrassed and irritated by the delays in replacing 115-year-old Anfield with a new stadium in the adjacent Stanley Park. The owners blamed the global economic turmoil for stalling the project that was due to open in 2011.
Gillett also owns ice hockey's Montreal Canadiens, while Hicks owns baseball's Texas Rangers and the NHL's Dallas Stars.