The Dubai International Capital investment group has ended its interest in a takeover of Liverpool.
The group, owned by the Dubai government, had been examining the club's books with a view to a £156m buy-out, but its decision to withdraw follows the failure of the Liverpool board to accept the offer last night, following a rival bid by American billionaire George Gillett. His bid is understood to be worth £8m more to Liverpool chairman David Moores.
"Dubai International Capital LLC today announces that it has decided to end negotiations with Liverpool FC and Athletic Grounds plc about a possible investment in the club," read a statement. "Having completed due diligence, DIC submitted a comprehensive offer to the Liverpool board. The offer had been accepted in principle by majority shareholder David Moores. It appears that the Liverpool board and the majority shareholder David Moores were unable to approve these terms in order to allow DIC to make a formal offer to all shareholders."
The news prolongs Liverpool's long search for the outside investment they believe they need to compete at the top end of the Premiership and in Europe. DIC had been their most likely suitor and entered into discussions with the club late last year. The deal would have valued the club at £450m, but the Dubai group have decided to withdraw following the board's decision to allow more time to consider the Gillett bid.
Gillett, owner of the Montreal Canadiens ice hockey team, has proposed a deal which is thought to offer shareholders more for their holdings. "We are very disappointed to be making this announcement. DIC is a serious investor with considerable resources at our disposal," said Sameer Al Ansari, executive chairman and chief executive officer of DIC.
"At the same time, we are supporters of the game and of the club. Liverpool's investment requirements have been well publicised and, after a huge amount of work, we proposed a deal that would provide the club with the funds it needs, both on and off the pitch. We were also prepared to offer shareholders a significant premium on the market price of the shares. However, we will not overpay for assets.
"Liverpool is the most successful football club in English football history. It exists to win things for its supporters. It deserves to be in the hands of people who support it, who understand its history and legend and who share the enthusiasm and passion of its fans. As businessmen, we move on. As fans, we hope that the new owners would share the same vision as we had for LFC and, of course, in realising the new stadium that is so badly needed to ensure the club can continue to compete at the highest level in the Premiership and Europe."