DIC to seal £400m deal for Liverpool in ‘three to four weeks’
By Jason Burt and Ian Herbert
DIC came close to buying Liverpool before the Americans’ acquisition and has tried to resume negotiations, on and off, ever since. The reason for the apparent confidence now could be that several of Hicks’ loans are due for refinancing within two or three months. This may be the trigger for his main lender – believed to be JP Morgan – to force him back into talks with DIC and accept its offer for Liverpool.
The full level of the Texan’s debt is unclear. But DIC sources believe he has been hit badly by the state of the financial markets in the United States, which has seen the value of assets which he has borrowed heavily against drop – in some cases by between 30 and 50 per cent. Were Hicks unable to refinance loans when, at a time of severe anxiety among financial institutions, they are due, JP Morgan could take over the assets Hicks has borrowed against or force a sale. Since bankers would tend to sell on such assets anyway the presence of a prospective buyer like DIC would be attractive to them.
Given how far apart DIC and Hicks seem to be, it would appear that any chance of the Arab consortium having a future role at Anfield would be through a complete takeover, with or without a junior partner.