Liverpool set for US takeover

US tycoons George Gillett Junior and Tom Hicks are set to buy Liverpool Football Club after terms "of a recommended cash offer" were agreed with the Merseysiders.The Anfield board "unanimously recommends" that shareholders accept the deal which outgoing chairman David Moores believes will see the five-times European champions take "a great step forward".And Moores has said that it was this development which convinced him to sell his beloved club to Gillett and Hicks' Kop Football Limited vehicle, which is offering shareholders £5,000 a share.Moores, who is to remain at Anfield as honorary life president, said: "I believe this is a great step forward for Liverpool, its shareholders and its fans. This club is my passion and forms a huge part of my life."After much careful consideration, I have agreed to sell my shares to assist in securing the investment needed for the new stadium and for the playing squad. I urge all my fellow shareholders to do the same and to support the offer. By doing so, I believe you will be backing the successful future of Liverpool Football Club."Shareholders have been told: "The offer is £5,000 in cash for each Liverpool Share, valuing the issued share capital of Liverpool at approximately £174.1 million. Together with the £44.8 million of net debt in the club as at December 31 2006, this represents an enterprise value for Liverpool of £218.9 million."It is believed that the Americans impressed the Anfield board with their intentions to help the Reds relocate to a new £215 million 60,000-capacity stadium at Stanley Park.Not only has Hicks built up a reputation for developing state-of-the-art stadia for his teams, but the duo have now guaranteed that Liverpool's new headquarters would not be shared with other teams which would have cut costs and maximised income.Gillett and Hicks, who are to share the £470 million costs, told reporters: "Liverpool is a fantastic club with a remarkable history and a passionate fan base."We fully acknowledge and appreciate the unique heritage and rich history of Liverpool and intend to respect this heritage in the future."The Hicks family and the Gillett family are extremely excited about continuing the club's legacy and tradition. We are particularly pleased that David Moores and Rick Parry will have a continuing involvement in the club. For us continuity and stability are keys to the future."Hicks, who owns the Texas Rangers baseball team, and Gillett, who is the owner of the Montreal Canadians ice hockey team, have insisted there is no similarity to the Malcolm Glazer takeover of Manchester United, where the money to purchase the club was in part borrowed against the club's projected future earnings.Gillett said: "We have purchased the club with no debt on the club, so I think in that regard it is different. We believe in the future of the club, the future of the league, the new TV contracts are outstanding and we are proud to be a part of it."When asked whether selling naming rights to the new stadium, Gillett replied: "If the naming rights are worth one great player a year in transfer spending, we will certainly look at that as a serious option."© Independent Television News Limited 2007. All rights reserved.

ITN | February 6, 2007