Reds' takeover negotiations going ''really badly''



Efforts by Tom Hicks and George Gillett to sell Liverpool to a Kuwaiti investment consortium have stalled over their refusal to revise the £500m valuation of the club.

Negotiations with Liverpool's American co-owners are ''going really badly,'' according to Abdulla Al-Sager, one of the investors in the consortium.

Rafed Al-Kharafi and Al-Sager were guests of the club for their 2-0 home win over Chelsea last month. The Al-Kharafi family, who are one of the wealthiest in Kuwait thanks to their oil interests, are understood to head the investment consortium.

But despite the Kuwaiti consortium's interest, Al-Sager revealed in an interview with Bloomberg that ''things are going really badly, because they are asking for too much. I don't think anything will happen unless we get a better price.''

With Hicks and Gillett refusing to reduce their £500m asking price the consortium look set to wait until July, the deadline for the co-owners to refinance or repay a £300m loan.

With some observers contending that in the current economic climate the co-owners will struggle to agree a refinancing deal, Hicks and Gillett could be forced to sell for much lower than their current asking price.

The Kuwaiti consortium are not the only group Liverpool have approached, with exploratory talks understood to have taken place with potential investors in the US and Middle East.

The co-owners' stewardship of the club has not been smooth since their takeover in February 2007, largely due to a breakdown in relations between Hicks and Gillett, which in turn fed a fractious relationship between manager Rafa Benitez and out-going chief executive Rick Parry.

In recent months Hicks and Gillett have put their differences aside in order to facilitate a full or partial sale; Hicks is thought to be keen to remain involved in the club if Gillett can be convinced to sell his stake, a scenario the Kuwait group have said they would be open to.

Meanwhile, Ian Ayre has emerged as the lead contender to replace Parry as the club's chief executive, according to the Telegraph.

Ayre, a 45-year-old American businessman, was appointed by Hicks as Liverpool's commercial director 18 months ago. It is understood that Hicks holds Ayre in high regard, not least because he shares his view that Liverpool should be exploiting their global fanbase more aggressively than the club has done under Parry.

Last week Liverpool announced that Parry would be stepping down at the end of the season.

source plus more awfulness here

UGH

Liverpool co-owners working toward £500m sale

Liverpool's co-owners Tom Hicks and George Gillett have attempted to start an auction for the Anfield club.

While it has emerged that one of the world's richest dynasties are in talks over a possible £500m takeover, it is also clear that the Kuwaiti Al-Kharafi family are not interested in purchasing just a minority share, as has been suggested.

Hicks and Gillett have appointed rival banks to try to find potential buyers - Merrill Lynch are working for Hicks while Gillett has appointed Rothschilds.

There is already believed to be one European party that wants to discuss a deal, and if the two banks can find further suitors, the American co-owners may be able to force a sale in excess of £500m.

It has emerged that Hicks sanctioned talks this week with the Al-Kharafi family, initially over funding for the club's new stadium but then for a possible takeover.

Gillett is thought to have been initially unaware of the talks, held with the club's commercial director Ian Ayre and financial director Phillip Nash.

Both are considered to be allies of Hicks in the on-going divorce between the club's owners.

A source close to the deal said: ''Hicks has been trying to sell his assets, and that is believed to include Texas Rangers, while Gillett has cut back on his NASCAR involvement.

''Liverpool was almost sold to the Al-Kharafi family in November, it only needed a signature, but they walked away. Hicks is believed to have been furious.''

Now the deal has been resurrected.

( more )