Wednesday, August 4, 2010

RBS Deny Role In Liverpool Takeover Talks

Royal Bank of Scotland has dismissed claims that it has been in discussions with any potential bidder for Liverpool FC, which owes the bank £237m.

Chinese billionaire Kenny Huang had claimed that he had been in talks with the bank over guaranteeing the debt of the club, where up to six bidders are said to be interested ahead of a deadline to choose a preferred bidder later this month.

City grandee Martin Broughton, appointed by the club’s unpopular American owners Tom Hicks and George Gillett as chairman to oversee the sale of the club, has said Barclays Capital will handle all financial negotiations.

A spokesman for RBS confirmed yesterday: "The guy (Huang) contacted us and we put him onto the club and the advisers. We have not had negotiations with him at all, there is a due process for any bidder."

The current owners have tried to put a valuation of £650m to £800m on the club, which they acquired in 2007 when they paid £220m to buy out existing shareholders and take on £45m of debt. A further £215m was said to have been injected to build a new stadium, which has so far failed to materialise.

Huang is said to have offered £325m. The Americans are under pressure to agree a deal before the transfer deadline on August 31, to underpin investment for the club’s new manager Roy Hodgson, or risk RBS pressing for repayment of the entire debt, driving Liverpool into an ignominious administration.

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