Source: Team_Talk
Huang quiet on Chinese government talk
Prospective Liverpool owner Kenny Huang has refused to comment on reports his consortium is being backed by the Chinese government.[LNB] Reports suggested Huang is fronting a bid backed by China Investment Corporation (CIC), the country's sovereign wealth fund which manages a £188billion portfolio.[LNB]Claims that CIC has sold £351million worth of shares in the global financial services firm Morgan Stanley, of which it acquired a 9.9% stake three years ago, in the last couple of weeks - a figure equivalent to the debts currently held by Liverpool - appeared to add credence to the link.[LNB]But then suggestions emerged that Huang's PR advisors had sent a statement to journalists in China refuting there was "any involvement of state-owned enterprises in his business dealings".[LNB]However,a spokeswoman for Hill and Knowlton Asia denied any statement had been released and said they had not issued any clarification which referred to the Chinese government.[LNB]And, according to the Financial Times, a spokesman for CIC said they had never heard of Huang or a plan to buy Liverpool.[LNB]CIC has numerous multi-million dollar global investments, including a stake in Canary Wharf, but there has been scepticism in the Far East about them buying into a Premier League club.[LNB]And it is a view held by sports finance expert Tom Cannon from Liverpool University.[LNB]"I have serious doubts about this deal," he said. "It's not the kind of investment I'd expect from the Chinese government. Frankly it doesn't ring true that they are involved.[LNB]"Until the Chinese government come out and say 'We are interested' I don't believe it. It's hard to see what's in it for them."[LNB]Huang's major rival in the process appears to be Syrian businessman Yahya Kirdi, representing a group of investors from the Middle East and Canada.[LNB]His claim yesterday that a price had been agreed with co-owners Tom Hicks and George Gillett and a formal purchase agreement "is in the final stage of negotiation" was greeted with some suspicion, but Cannon feels it is the more likely of the two to succeed.[LNB]"Look at the Chinese government. They invest in traditional industry. Syrians are entrepreneurs who are maybe able to see a long-term return," he told Sky Sports News.[LNB]"The dollar is so weak, that's why I see the Middle East as most likely, that's where there are resources. More likely than USA or China."[LNB]Liverpool chairman Martin Broughton is hopeful of concluding a sale by the end of the month but the break up of Hicks' sports empire has already begun in the United States.[LNB]His baseball franchise the Texas Rangers was auctioned off for £374million in the early hours of this morning after Hicks' ownership group defaulted on loans.[LNB]According to the team's bankruptcy plan, creditors will only get about £47million of the £330million owed to them.[LNB]However, the judge in the case said lenders can go after Hicks' other companies, although it is not sure how that will affect Liverpool, if at all.[LNB]The Texan is currently also looking to sell the Dallas Stars ice hockey team by the autumn as he moves out of sports ownership.
