Chinese government could be Liverpool’s new owners

The protracted competition to buy Liverpool is reaching the final stages, as a preferred bidder will be elected by the end of next week and it has emerged that the club could be welcoming a new red army to Anfield.

The Chinese government fund represented by Kenny Huang is thought to be leading the race to secure the purchase of the club as the investment group have spent the past fortnight raising the exact money to match the asking price.

The China Investment Corporation has sold $558m of shares in Morgan Stanley (£351.4m of the queen’s sterling,) which amounts to the clubs debts and is thought to be the precise price that has been quoted to interested parties.

The Guardian importantly reported that China Daily, the English-language arm of the Chinese state media, announced yesterday “China Investment Corp, the Chinese sovereign wealth fund that bought a 9.9% stake in Morgan Stanley in 2007, sold $90.5m of shares in the investment bank on 30 July, bringing the total amount divested in the last two weeks to about $558m.”

The newspaper also continued by suggesting that Yahya Kirdi, the former Syrian footballer with business links in Canada has reportedly fallen behind in his pursuit of the club having previously talked up his interest, but is said not to have meaningfully pursued it, although the BBC has suggested negotiations have advanced.

Admittedly the deal is far form being completed, as no formal bid has yet been tabled by CIC, but their ability to raise the cash suggests that they’re in a position to make a bid and are in a far more advanced position than any of the other reported investors.

Some fans could be concerned by the influence of a bid, which has close association and influence over another red army.

In an attempt to pacify any fears the investment group stated on their website, “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.”

Concerns that the passionate pre-match ‘You’ll Never Walk Alone’ could take on a more regimented and military style appear unfounded if the statement is to believed, but if the bid is successful, it would certainly be a landmark moment in the history of Liverpool football club and even the Premier League, if the Chinese government gained a grip on one of the country’s most prestigious clubs.

It could be worse though. George Gillett and Tom Hicks could remian at the helm.

Posted By Dan Mobbs - Thursday August 5, 2010.
Tags: Liverpool, Premier League