Source: Telegraph
Kenneth Huang group reveals more detail on Liverpool takeover bid
In an interview with the Associated Press agency Marc Ganis, whose Chicago-based company Sportscorp Ltd. has helped compile the Huang bid, offered more detail on the structure and companies behind the bid. [LNB]He said that a number of investors, possibly including the China Investment Corporation, would take a stake in the club with none owning more than 20 per cent.[LNB] Related ArticlesHodgson to resist late spending spreePoulsen's proposed move to Liverpool gathers paceJoe Cole admits to Anfield nervesLiverpool 2 Rabotnicki 0; agg 4-0Liverpool and China could be the right matchThe Revolutionary RedsGanis said that the group first contacted Liverpool chairman on Monday, a day after the first reports of Huang's involvement appeared in the UK media. [LNB]He also said the group intended not to enrich owners Tom Hicks and George Gillett, a statement sure to win favour among supporters. [LNB]"We haven't submitted a formal proposal but we submitted the broad parameters of what a proposal would look like to see if it would be welcomed, and it was," Ganis said in a telephone interview with AP arranged through Huang's PR advisors Hill & Knowlton Hong Kong. [LNB]"What is not one of our goals in the enrichment of the existing owners," Ganis said. "If we submit a proposal and it is accepted, it would be focused on the future and not the past." [LNB]Ganis would not reveal what price Huang's group was willing to pay but said it would not get anywhere near Hicks' £800m valuation. "If anybody wants to [pay that], good luck. We know what we would be prepared to do. If somebody else wants to look at it in a different way, it's their money. That would be their business, not ours." [LNB]Ganis said that if a deal proceeds the club would be owned by a new company ultimately owned by QSL Sports Limited, the company headed by Huang and Guang Yang, executive vice president of Franklin Templeton Investments and chief investment officer of the China Life/Franklin Templeton Fund. [LNB]Ganis said that Huang and Yang would be involved in the day-to-day management of the club, but that there would be other 'passive investors', none of whom would own more than 20 per cent. [LNB]Ganis said that China Investment Corporation, the country's sovereign wealth fund, might be part of an investment vehicle that would have a passive ownership interest in the club. The precise nature of CIC's involvement has been a matter of speculation since it was revealed on Thursday. [LNB]Ganis said the group aimed to leave Liverpool debt free, invest in the club and construct a new stadium to replace Anfield, provide funds for new playersand seek to expand Liverpool's fan base and commercial activities in Asia using QSL's contacts. [LNB]Despite Ganis's comments the Huang bid is yet to provide proof of funds to Liverpool chairman Martin Broughton and investment bank Barclays Capital. [LNB]Broughton has told all interested parties that he needs to see proof of funds by next week in the hope that he can conclude a deal by the end of the the month. [LNB]Syrian businessman Yahya Kirdi is fronting a group of investors interested in the in the club and claims to be in advanced negotiations with Hicks and Gillett. The Americans believe Kirdi's bid is substantial. [LNB]The New York-based Rhone Group and Kuwaiti family investors the Al-Kharafi family have also expressed an interest but have offered no public statements about their intentions. [LNB]His group isn't concerned about high-spending owners in the Premier League, who include Manchester City's Sheik Mansour bin Zayed Al Nahyan and Chelsea's Roman Abramovich. Ganis said the Financial Fair Play rules that begin for European soccer this season will help curb extreme spending on transfers. [LNB]"That creates certain constraints that many observers feel are quite responsible and will reduce the risk of irrational money being spent," he said. "But even at that, Liverpool is and always should be one of the highest-spending clubs in all of football. And our financial models presume Liverpool will be at or near the top in spending on players every year." [LNB]Ganis said that they have been impressed in many ways with the manner in which Liverpool is being operated. [LNB]"From what we have seen from afar, many of the people currently running Liverpool are doing a good job," he said. "There shouldn't be an expectation there would be a mass upheaval if we submit and are approved." [LNB]Ganis and the China-based group began forming last spring as a potential investor with another group that evaluated a potential investment in Liverpool. Ganis contacted the Royal Bank of Scotland, which holds Liverpool's debt, and was put in contact last week with Broughton and Barclays Capital, which is attempting to sell the club for the co-owners. [LNB]QSL, in conjunction with the Chinese government, owns and operated two professional sports leagues and one minor league. QSL also owns sports publications and in September will roll out an all-sports website. [LNB]
