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Hicks exploring how to take sole control of Liverpool

Liverpool co-owner Tom Hicks is exploring how to take control of the club by acquiring all or part of George Gillett Jr.'s 50 percent stake.

The preferred option is to raise private equity, possibly for his entire sports group, a person familiar with Hicks' plans said on condition of anonymity because of the sensitivity of the situation.

The duo bought the English Premier League club for £218.9 million (then US$431 million) as 50-50 partners last March, but Gillett is seeking to sell his share and Hicks is trying to raise money to become the majority owner.

Hicks alluded this week that Gillett was exploring a sale of his stake to Dubai International Capital (DIC). And in an interview with the Fort Worth Star-Telegram, Hicks publicly affirmed his power to block Gillett from selling his shares.

Gillett's ongoing discussions to sell to DIC again were confirmed on Friday by a financial industry executive familiar with negotiations. The executive spoke on condition of anonymity because of the sensitivity of the talks.

If Hicks could secure sufficient funding to become the controlling owner at Anfield, it would send a defiant message to fans that he will be a long-term fixture at English soccer's most-decorated club.

DIC was in talks to acquire the club a year ago, but withdrew. DIC -- the private-equity investment arm of the Dubai government -- is only interested in acquiring a controlling stake, the executive said.

Roy Winnick, a New York-based spokesman for Hicks, would not comment on his client's options.

Hicks could attempt to buy out Gillett's shares and personal guarantees, which were central to last month's refinancing of the loan used to purchase Liverpool. The price of a buyout by Hicks of Gillett would be about £150 million (US$300 million), the financial industry executive said.

A person familiar with Hicks' plans ruled out a public offering of shares in Hicks Sports Group, which includes Major League Baseball's Texas Rangers and the NHL's Dallas Stars, as well as the 50 percent stake in Liverpool through Kop Holdings. The person cited volatility in the global financial markets.

The window of opportunity for that option may reopen before the end of the year, but is not currently viable, the person added.

But the executive, who has been in contact with JP Morgan Chase & Co, said Hicks has been looking into the feasibility of a private placement to raise money.

Last month, Hicks revealed he had spoken to DIC about a "10 to 15 percent participation" but that his valuation was viewed by DIC as too high.

Since then, Hicks has said that he wants to take a "more active role" at Anfield, while affirming his commitment to the club "regardless" of Gillett's actions this week.

But DIC and Gillett are in constant negotiations, the financial executive said. The Dubai consortium is interested only in gaining control of the Reds, the executive said. That would require Hicks to sell shares, which is not being considered.

"He's not in the market to sell, but he's in the market to buy more shares," another person close to Hicks said, also speaking on condition of anonymity because of the sensitivity of the deal.

"Not only am I not going to sell, my partner cannot sell without my approval," Hicks said in Thursday's Fort Worth Star-Telegram. "So, I kind of have the ability to determine the outcome of what is going to happen and I am right in the middle of that."
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