The Liverpool takeover bid rumbles on
to rumble on with news that Tom Hicks and Dubai Investment Capital (DIC) may be prepared to adapt their position in order to accommodate each other. This could lead to DIC buying 49% of the club with Hicks taking 1% from his co-owner George Gillett in order to take controlling interest.
I understand the deal being discussed between Gillett and DIC for his Liverpool shares would involve Dubai paying him £60m in cash, which would represent a profit of £40m on his cash investment.
Liverpool's two co-owners invested £20m each into the club only a few weeks ago - amazingly the only cash investment they have made. The rest of the recently refinanced funding package is in the form of letters of credit and personal guarantees.
The two Americans are believed to have each guaranteed £90m. The rest of the funding package, that has recently been refinanced, is in the form of letters of credit and personal guarantees given by Gillett and Hicks.
As part of the deal DIC would also share future profits in Liverpool and take over the loans for which Gillett has provided guarantees.
Dubai is also in negotiations with but would like to get controlling interest, hence his desire to purchase a 1% stake from Gillett to give him a 51% holding.
In the past, Dubai has not been interested in being a minority shareholder but is now prepared to have a 49% stake.
Well-placed sources have told me Dubai have no problems with Hicks.
The American's desire to have a controlling interest is derived from the financing arrangements he is making for his sporting franchises which include Texas Rangers and Dallas Stars, among others. This requires him to have technical control of Liverpool.
The talks are believed to be proceeding amicably with expectations of a deal.
The negotiations between Gillett's lawyers and DIC have also seen the presence of Liverpool chief executive Rick Parry at the request of the American.
Although there has been talk of Dubai setting deadlines I understand this is more of a negotiating tactic. Talks are still proceeding with both Hicks and Gillett, but are still some way from completion.
It is not absolutely certain Gillett will sell.
Sources close to the deal have told me that he still has a conceptual problem about selling Liverpool, a club he fought so hard to acquire last year, snatching it away from DIC at the last minute.
Gillette has also to agree with the offer Dubai has made to him.
Back in February 2007, the offer document made it clear the American duo had borrowed money to finance their purchase.
That document said an acquisition loan facility of £185m had been made, along with other borrowings as well.
The loan had to be refinanced in February and this has meant Liverpool's overall debt is £350m.
In addition to the £185m acquisition debt, there is a further £60m of inter-company debt, a £60m debt earmarked for the stadium as well as £45m for player transfers and working capital - all in all this emphasises just how little cash the Americans have put in.
The last two items, amounting to £105m, are charged on the books of the club. The rest of the debt is still being carried by Gillett and Hicks. All that will change if and when the Dubai deal takes place.