By Soccernet staff
<!-- end story header --><!-- begin left column
-->
August 5, 2010
A takeover bid financed by the Chinese government is reported to
be the preferred bidder in the race to buy Liverpool.
Chairman Martin Broughton is hoping to complete a sale of
the club before the end of the month with several interested
parties having come forward. According to reports in several of
Thursday morning's newspapers, the rival offer from Syrian Yahya
Kirdi will not be successful.
Current owners Tom Hicks and George Gillett were said to favour
the interest from Kirdi as they would be able to walk away from
Anfield with a profit.
The Chinese Investment Corporation (CIC), which invests China's
cash reserves in foreign countries, is only willing to repay to
debt to Royal Bank of Scotland and Barclays Capital, leaving the
North American duo with no return on their investment.
Representatives of Kirdi have claimed to be "in the final stage
of negotiation" but that appears to be wide of the mark, with the
CIC bid - spearheaded by businessman Kenny Huang - at the head of
the queue.
CIC is said to have assets of £209 billion, which would allay
fears over the funding of the deal. The Times claims
manager Roy Hodgson will be given £150 million to spend.
The Guardian reports that CIC has spent the past
fortnight selling shares in other companies to free up the precise
amount of cash to clear Liverpool's debt. The report states: "In a
series of trades since July 19, CIC has sold $558 million of shares
in Morgan Stanley, equating to £351.4 million. That sum is
equivalent to Liverpool's debt to the nearest decimal place, and is
exactly the number insiders say has been quoted to interested
parties as the sale price."
CIC's website states: "CIC strives to contribute to the
prosperity and development of local economies. CIC usually does not
seek an active role in the companies in which it invests nor
attempts to influence those companies' operations. CIC seeks
long-term, stable, sustainable, and risk-adjusted return."
New York based Rhone Group and the Al-Kharafi family from Kuwait
are also said to be in negotiations.