DaveLFC

http://www.independent.co.uk/sport/football/premier-league/financial-muscle-makes-chinese-bid-favourite-with-liverpool-board-2043469.html Liverpool's American owners Tom Hicks and George Gillett appeared to be losing their fight to walk away from the club with a profit last night as Gillett's preferred Syrian buy-out bid was widely dismissed as lacking credibility and the rival Chinese move for the club was revealed to be backed by the state-owned Chinese Investment Corporation (CIC) which has $332bn (£209bn) of assets under management. In another day of dramatic scrambling for the ownership of Liverpool, which coincided with manager Roy Hodgson confirming he is ready to make an £8m bid to bring Juventus' defensive midfielder Christian Poulsen to Anfield as a likely replacement for Javier Mascherano, representatives of Yahya Kirdi, the former Syria international now fronting the bid, insisted that a price has been agreed and a formal purchase agreement "is in the final stage of negotiation". But the Kirdi camp could not explain to The Independent last night where their money was coming from, and this newspaper also understands that CIC is behind the rival Chinese move for the club, led by businessman Kenny Huang, which appears to remove one of the biggest uncertainties about that bid. CIC, formed in 2007 as a way of investing Chinese currency reserves, ploughed €800m (£665m)into one of the funds operated by the Apax Partners private equity company earlier this year, though a move for Liverpool would be something completely different to its previous activities. Though questions remain about Huang – claims that he bid for a stake in the Cleveland Cavaliers basketball team in the United States, have been denied by the National Basketball Association – the precise source of the sovereign wealth which his representatives assert is behind him has not been divulged until now. Gillett is desperate to fend off Huang's bid as the money offered would be used to buy the club's £237m debt from the banks and to invest in the club. None of the funds would go to Gillett or his co-owner Hicks, leaving them nothing from their initial personal investment of £130m. The firm suspicion remains that Gillett is touting Kirdi as a stalling device to prevent a Chinese takeover at the end of the month. Liverpool's non-executive chairman, Martin Broughton, of Barclays Capital (BarCap), was recruited by Hicks and Gillett to find a buyer for the club but is aware that if he arranges a sale to buyers who make a mess of the club's future, his reputation will be severely damaged. Broughton has suggested that there are several bids to weigh up before preferred bidder status is granted, preferably before the transfer window closes, though as of last night the Huang bid and that of the New York based Rhône Group – who have re-entered the picture, four months after their £100m bid for a share of the club ultimately proved fruitless – were the only the main contenders. Despite reports to the contrary last night, a source close to the process said a bid from the Kuwaiti Al-Kharafi family looks unlikely to succeed, despite them having re-entered the picture recently. Having made his part in the scramble for the club clear in a blizzard of publicity – perhaps to make sure that Hicks and Gillett can not manoeuvre him out of the picture behind the scenes as they did Rhône Group back in March – Huang has decided, or been asked, to move back into the shadows as his offer to buy out the club's £237m debt from the Royal Bank of Scotland is now considered. To that end, Huang has clarified that his negotiation is ongoing and stipulated that only his PR agents, the Hong Kong office of Hill and Knowlton, are now authorised to speak for him. But the public job of pressing Liverpool to accept his bid by his deadline of tomorrow week, apparently in time for Hodgson to get his hands on Chinese funds to spend on transfers, has been well and truly done. Though Broughton and BarCap have given Gillett clearance to pursue discussions with Kirdi, claims from the Syrian's representatives yesterday that an agreement on purchase price has been reached, which would pay off the club's debt and build the new stadium critical to their financial future, were met with bemusement by those close to the investment process. Two sources in the financial community have suggested that the size of Kirdi's offer far outweighs Haung's, though with the source of his funds so unclear the fear is that he, like Gillett and Hicks, may be planning to borrow money to purchase with a leveraged buy-out which would leave the club's future as uncertain as ever. Of the uncertain financial future, Hodgson would say only that it is better that the Americans be gone soon. "I don't want to go down the ownership route because I don't know enough about it," the manager said. "Unfortunately the owners we have are very unpopular with the fans. They know it and that is why they are prepared to sell the club." The Chinese investment fund behind Huang's bid * Established in Beijing in September 2007, the China Investment Corporation (CIC) is a $300bn (£190bn) sovereign wealth fund. * Modelled on a similar fund in Singapore, It was originally established to utilise China's foreign exchange reserves for the benefit of the state and to mitigate risks in the country's huge foreign exchange reserves. * The fund comprises of two halves: an operation which makes global investments, and China Huijin Investment Ltd, which invests in domestic state-owned financial institutions on the government's behalf. Reserves are mainly held in low-risk, low-yielding instruments such as US Treasury bonds, but the global recession has led CIC to attempt to diversify to improve returns. * CIC recorded an 11.7 per cent return on their £37bn overseas investments last year, reversing a decline from the previous 12 months when investments fell 2.1 per cent as an indirect result of the global financial situation. Net profit totalled $41.66bn (£26.2bn) last year, almost doubling the $23.1bn (£14.6bn) from 2008. Nearly 44 per cent of the fund's equity investments were in North America, with 28.4 per cent in the Asia-Pacific region and 20.5 per cent in Europe. * At the end of last year, the fund held shares in dozens of US-listed companies, including Coca-Cola, Morgan Stanley, Citigroup and private equity giant Blackstone, while also having equity holdings in US-listed firms included shares in Motorola among others.

Gillett probably paid for the full 24 hour coverage.

http://www.thetimes.co.uk/tto/sport/...cle2674350.ece Club becomes pawn in a high-stakes game as power shifts to East Matthew Syed Updated 20 minutes ago It is a development of epic symbolism. The government of the world’s most populous nation is set to purchase one of Britain’s most treasured cultural assets from two American capitalists. It speaks of globalisation, political power and the sweep of modern commercialism. More than anything, it tells of the growing economic might of the last great bastion of totalitarianism. The takeover of Liverpool Football Club by an investment fund of the Chinese state would represent a stunning propaganda coup. For a nation that suffered a century of humiliation — which commenced with defeat in the Opium Wars, continued with the crushing of the Boxer Rebellion and culminated with invasion by Japan on the eve of the Second World War — it is a statement of withering intent. The Chinese Politburo must be licking its lips at the political imagery. China already holds a stake in Britain’s tallest building; now it is set to purchase an institution with huge emotional resonance — and not just in the North West. Short of snaffling a wing of Buckingham Palace for its property portfolio, it is a move that could scarcely be more symbolic, or more sensitive. But the takeover also represents an unprecedented — and intriguing — chance for the Chinese Government to make a yuan or two. This is the first time that a major dictatorship has tried to purchase one of the world’s premier sporting institutions. It is a dictatorship that controls most of the big tentacles of the Chinese media; that could, if it wished, insist on back-page photos of Liverpool players throughout the football season; that could skew state television to reflect its interests. It is worth remembering that when Chairman Mao ran the show, he issued what might be described as a firm request that the masses read his Little Red Book. Within years, it had become the most widely read publication in history after the Bible. The relationship between citizens and state is a little different now, of course, but, should the Government try to wield its power in anything like a similar way, the commercial ramifications for Liverpool FC could be almost beyond measure. These are the possibilities that Liverpool fans will be digesting with news of the possible takeover; that Steven Gerrard and Fernando Torres will be weighing as they ponder their future; that the world’s elite players will be getting their heads around as they wonder where this leaves the global industrial complex that football has become. Whatever else, we have the prospect of a bidding war for talent not just between billionaires but also by nations that can, if they so wish, print money. Freed by the economic reforms of Deng Xiaoping, the Chinese economy is booming. It has grown by an average of 10 per cent per annum over the past decade and is at present growing at 9 per cent. This has created a burgeoning middle class flush with the kind of disposable income that makes them ideal customers for replica shirts and TV content. What is certain is that football, already the biggest sport in China, is set to grow, something that will delight not merely Liverpool but the entire Barclays Premier League. But whether the takeover proves to be benign, both for Liverpool and for English football, is too early to say. The questions, ambiguities and potential ramifications are endless. Perhaps the only certainty is that the Chinese Government’s potential purchase heralds a new era in a world that is changing at breakneck speed. Cultural revolution While Chinese players have made minimal impact on English football, Anfield could benefit culturally as well as financially from a Chinese takeover. Confucius was a highly quotable cultural icon who became recognised as a god-like figure after his death. Much like Bill Shankly, then. Shankly and Confucius preached the importance of straightforward tactics. “Football is a simple game ,” Shankly once said; for Confucius: “Life is really simple but we insist on making it complicated.” Shankly famously quipped: “Me having no education, I had to use my brains.” Or, as the veteran Chinese theorist put it: “He who learns but does not think is lost.” Liverpool have long searched for an effective leftwinger. Step forward Mao Zedong, whose belief in the importance of fitness and physical strength will chime well with Roy Hodgson, who made Fulham into one of the most energetic and tough sides in the top-flight. “In general, any form of exercise, of pursued continuously, will help train us in perseverance. Long-distance running is particularly good,” Mao wrote in his 1917 article on physical education.

Huang set to give Hodgson £150m vote of confidence Tony Barrett, Tony Evans Updated 21 minutes ago Roy Hodgson will keep his job as Liverpool manager and be handed £150 million to spend on new players if the Chinese Government’s bid to buy the club proves successful. As revealed in The Times today, Kenny Huang, the Hong Kong-based businessman, is fronting the bid by China Investment Corporation (CIC), the overseas investment arm of the Chinese Government. A formal offer has still to be lodged, but although there is interest from other parties, Huang — backed by the wealth of one of the fastest-growing economies in the world — is believed to be the front-runner to complete a purchase. CIC is prepared to back Hodgson by bankrolling a number of high-profile signings and has made a commitment to build a new stadium. Liverpool are also attracting interest from the Rhône Group, the New York-based fund management firm, and the al-Kharafi family from Kuwait. Yahya Kirdi, a Canadian-based businessman from Syria, claimed yesterday that he is close to finalising a deal, but it is understood that he is negotiating only with George Gillett Jr, the club’s co-owner, and has not been involved with RBS, which holds Liverpool’s £237 million debt, or Barclays Capital, the investment bank overseeing the sale. http://www.thetimes.co.uk/tto/sport/...cle2674311.ece

Updated 1 minute ago The Chinese Government is the mystery backer behind a bid for Liverpool Football Club, The Times can reveal. China’s overseas investment arm China Investment Corporation (CIC), which already owns a stake in Canary Wharf, is funding the bid fronted by the sports tycoon Kenny Huang for one of Britain’s biggest sporting names. The debt-laden club is expected to change hands this month and last night the Chinese appeared to be in pole position to win a three-way takeover battle. The other bidders are a wealthy Kuwaiti family and an American private equity group. Liverpool’s lender, the Royal Bank of Scotland, forced the club’s unpopular American owners, Tom Hicks and George Gillett, to put it up for sale in April. A number of potential foreign buyers have been circling, but until now the role of the Communist Government was unknown. The acquisition would be just a tiny piece of China’s vast global investment plan. CIC was created in 2007 to invest billions of dollars for the benefit of the State. The country has been able to stockpile nearly $2 trillion of foreign currency reserves because it exports many more billions of pounds of goods and services than it imports. CIC has $332 billion to spend abroad. The fund already has stakes in natural resources and energy companies in Asia, the US and Africa as part of China’s long-term strategy of securing its energy supplies. Liverpool would be its first football club and a high-profile entry into British cultural life. Neither CIC nor Mr Huang was available for comment last night, but insiders said that CIC would end up owning the majority of the club if the consortium’s planned bid — which values Liverpool at between £300 million and £350 million — is successful. China is not the first foreign country to covet English Premier League teams. Arsenal, Aston Villa, Birmingham, Chelsea, Liverpool, Manchester United, Manchester City and Sunderland are all in foreign hands. Manchester City, which is owned by Sheikh Mansour bin Zayed al-Nahyan, a senior member of the Royal Family in Abu Dhabi, and Chelsea, owned by the Russian oligarch Roman Abramovich, were bought as trophy assets. The owners have poured in money without seeking a profit. It is believed that the Chinese would expect to make money by building a bigger stadium in Merseyside and developing the club’s Asian fan base. Liverpool already has a sponsorship deal with the bank Standard Chartered, which focuses on Asia. Presenting the bank’s half-year results yesterday, Peter Sands, its chief executive, said that its sponsorship of Liverpool was the most cost-effective way of getting Standard Chartered’s name on to television screens across Asia. The sale is being run by Barcap, Barclays’ investment banking arm, and Martin Broughton, chairman of British Airways, who was brought in as temporary chairman of the club in April. Insiders said that it was a three-way contest between the Chinese, Rhône Capital, a private equity group, and the billionare al-Kharafi family of Kuwait. Any buyer must be cleared by the Premier League, which has held talks with the bidders. The main test is financial and it is unlikely that a bid would be blocked from the cash-rich Chinese. Mr Huang reiterated his interest in Liverpool through his PR firm Hill & Knowlton yesterday but said that he had yet to make a formal binding bid.

The Chinese Government is the mystery backer behind a bid for Liverpool Football Club, The Times can reveal. China’s overseas investment arm China Investment Corporation (CIC), which already owns a stake in Canary Wharf, is funding the bid fronted by the sports tycoon Kenny Huang for one of Britain’s biggest sporting names. The debt-laden club is expected to change hands this month and last night the Chinese appeared to be in pole position to win a three-way takeover battle. The other bidders are a wealthy Kuwaiti family and an American private equity group. Liverpool’s lender, the Royal Bank of Scotland, forced the club’s unpopular American owners, Tom Hicks and George Gillett, to put it up for sale in April. A number of potential foreign buyers have been circling, but until now the role of the Communist Government was unknown. The acquisition would be just a tiny piece of China’s vast global investment plan. CIC was created in 2007 to invest billions of dollars for the benefit of the State. The country has been able to stockpile nearly $2 trillion of foreign currency reserves because it exports many more billions of pounds of goods and services than it imports. CIC has $332 billion to spend abroad. The fund already has stakes in natural resources and energy companies in Asia, the US and Africa as part of China’s long-term strategy of securing its energy supplies. Liverpool would be its first football club and a high-profile entry into British cultural life. Neither CIC nor Mr Huang was available for comment last night, but insiders said that CIC would end up owning the majority of the club if the consortium’s planned bid — which values Liverpool at between £300 million and £350 million — is successful. China is not the first foreign country to covet English Premier League teams. Arsenal, Aston Villa, Birmingham, Chelsea, Liverpool, Manchester United, Manchester City and Sunderland are all in foreign hands. Manchester City, which is owned by Sheikh Mansour bin Zayed al-Nahyan, a senior member of the Royal Family in Abu Dhabi, and Chelsea, owned by the Russian oligarch Roman Abramovich, were bought as trophy assets. The owners have poured in money without seeking a profit. It is believed that the Chinese would expect to make money by building a bigger stadium in Merseyside and developing the club’s Asian fan base. Liverpool already has a sponsorship deal with the bank Standard Chartered, which focuses on Asia. Presenting the bank’s half-year results yesterday, Peter Sands, its chief executive, said that its sponsorship of Liverpool was the most cost-effective way of getting Standard Chartered’s name on to television screens across Asia. The sale is being run by Barcap, Barclays’ investment banking arm, and Martin Broughton, chairman of British Airways, who was brought in as temporary chairman of the club in April. Insiders said that it was a three-way contest between the Chinese, Rhône Capital, a private equity group, and the billionare al-Kharafi family of Kuwait. Any buyer must be cleared by the Premier League, which has held talks with the bidders. The main test is financial and it is unlikely that a bid would be blocked from the cash-rich Chinese. Mr Huang reiterated his interest in Liverpool through his PR firm Hill & Knowlton yesterday but said that he had yet to make a formal binding bid.

The only way he could have made that sound any more crazy was if he offered to build a monorail too.

As if the wags aren't orange enough already.

You clearly need to get laid, no not as in have sex but have some big bird squeeze you out of their c*nt.

You've never been to a UK airport?

Even Gazza knows Broughty doesn't like fishing.

All we need now is Gazza to turn up with a bag full of cash and a six pack so he can sit down with Broughton and get the deal done, he knows him well.

You do know that the voices in your head don't count, don't you?

Well it isn't the Rhone bid as that's BS. You know no more than anyone else. Until it's announced none of us do.

I've not ticked the auto cup boxes, the b******s were taking money far too early last season. Once when they had a panic for the last group game of the CL and once for the first Europa Cup game, to stop people cancelling. They can stick it all this season.

B*lox, Rafa has DVds of them all.

They announced that our title challenge was over on Saturday while announcing Chelsea's title challenge was kept alive by their win. You couldn't make it up.

With Gerrard and Alonso out we were always going to be struggling. That Lucas is what we have to replace one of them is the saddest part of it all. I'm not blaming him for the draw, I too hate making scapegoats but was chatting with a mate of mine on the way back from the game and I just don't see what he adds to the team. My mate argued that he made some decent passes and a few challenges. But that' not enough to warrant his place in the team. I've seen enough myself, he's awful and we're effectively a 'man down' when he takes to the pitch. Get rid, sell or give him away. Today if possible as he's s****.

I'd much rather us have the money from the sponsorship myself. We're not exactly flush at the moment and if having the Carlsberg on the shirts means we can afford that extra bit for a decent player then give me the logo on the shirt. Without the sponsorship on the shirt, the cash has to come from somewhere. So is it ticket prices? Lack of money for transfers? I'd like to see no sponsor on the shirts, (I don't have one on mine) I hate the advertising boards too. But it's income we need to compete I'm afraid.

Whoever it was, TURN THE ******* VOLUME DOWN!

Why do you never stop and sign autographs at Melwood? Great player, been at the club for years and still have a lot to offer. But constantly drive past your fans each day, even when stuck behind Kuyt, (who was signing) you just blanked them, sat in your car and drove off. I remember as a kid going to Anfield and getting all of the players autographs, Hughes, Dalglish, Neal.. well you get the idea. I still have that book and it means a lot to me. Maybe you should have a chat with Carragher or Torres.

If games finished a few seconds before we scored our first goal we'd be bottom of the league now. I just love the way the media/pundits/sky can twist anything to sound bad.

They have a corner of the season competition.

So it's not only on the pitch that we're poor at corners then?

They will print tickets if your usual seat is not available, otherwise it's on your card like all other cup and CL games are this season.