Liverpool's co-owner George Gillett will spend the next few days deciding whether to support a plan to buy out his partner, Tom Hicks, or throw his weight behind a refinancing package that would strengthen Hicks's hold on the club.
Gillett and his co-chairman Hicks have almost finalised terms on a €466 million loan that would allow them to repay money borrowed for their €291 million takeover, repay loans acquired to sign players last summer and begin work on their revised plans for a new stadium. The deal, with the Royal Bank of Scotland and US investment firm Wachovia, could be completed early next week providing the two Americans sign the terms on offer.
After a period of instability unprecedented in Liverpool's recent history, Gillett is understood to have grave misgivings over his continued involvement with Hicks, the man he brought on board to secure the takeover last February but who has proved far from the silent partner he originally envisaged. A fresh dilemma for Gillett is that Dubai International Capital, the investment arm of the Dubai government, is now prepared to provide him with the financial backing to make an offer for Hicks's 50 per cent stake in Liverpool.
DIC lost out in the pursuit of former chairman David Moores' majority shareholding last February when its failure to meet agreed deadlines for the takeover enabled the Americans to succeed with a late and more lucrative bid. Though it withdrew acrimoniously from negotiations DIC has maintained its interest and, having baulked at a €199 million asking price for a 15 per cent stake last October, Sheikh Mohammed bin Rashid al-Maktoum's investment company now hopes to capitalise on the disunity in the hierarchy.
DIC is willing to join forces with Gillett in an attempt to persuade Hicks to sell his interest in Liverpool for a substantial profit. A source confirmed yesterday a deal has been drawn up in principle and will be presented to the Americans before they put their signatures to the loan. "It is a very delicate situation but DIC has reignited its interest," said the source.
Major obstacles remain in the way of DIC gaining a financial interest in Liverpool, however, not least Hicks's insistence he has no intention of selling up. There is also doubt over Gillett's determination to attempt to oust his business partner by agreeing terms with DIC. Gillett and Hicks both have an option to purchase the other's stake in Liverpool, although the former would require backing from Dubai to achieve that goal.
Under the terms of the loan it is anticipated half of the debt will be burdened on the club and the rest secured against Kop Holdings, Gillett and Hicks's parent company.
