What We're Reading

Gillett, DIC Urge Hicks to Sell Liverpool Stake

  • Guardian, Friday, January 18, 2008 4:15 PM
Americans George Gillett and Tom Hicks have nearly finalized a refinancing plan for the $700 million debt incurred when they took over Liverpool last February. The loan deal involving the Royal Bank of Scotland and U.S. investment firm Wachovia is set to be completed early next week, provided Gillett and Hicks agree to the terms.

However, the Guardian reports that all is not well in the American camp. Gillett in particular is understood to have "grave misgivings" over Hicks' involvement, and could be supporting a proposed buyout of the sports mogul's 50 percent stake by Arab investment Dubai International Capital, whose presence has hovered over the unrest at Liverpool in recent weeks. DIC lost out in the pursuit of former club chairman David Moores' majority stake when the group failed to meet agreed upon deadlines last February, enabling the Americans to swoop in to complete the takeover.

According to the Guardian, Gillett is now aligning with DIC to persuade Hicks to sell his stake at "a substantial profit." Sources say a deal has been drafted and agreed upon in principle, but it would have to be put in place before the Americans sign the loan deal next week. However, the Gillett-DIC plan would be moot if Hicks has no interest in selling-which he has repeatedly insisted.

Read the whole story at Guardian »

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