Wednesday, October 13, 2010

Liverpool Takeover: Peter Lim May Sue Club Over Bidding Process

Singaporean billionaire Peter Lim, who on Tuesday submitted an improved, £320 million offer to buy Liverpool, could yet sue the club over the initial sales process which resulted in the Anfield board rejecting his bid in favour of New England Sports Ventures.

His advisers, the Wong Partnership, on Tuesday submitted a letter to the High Court detailing Lim's "surprise" at learning NESV had come to an agreement with Liverpool's three non-shareholder directors less than 12 hours after he was informed his offer was "preferred and superior".

Paul Girolami QC, for Tom Hicks and others, revealed Lim had taken legal advice on the decisions taken by the club's directors between 3pm on Oct 5 – when Lim was informed he remained the preferred bidder – and when the agreement with NESV was struck.

He has also submitted a request to discover whether the terms of his offer, which sources close to the billionaire believe was financially more attractive until NESV improved its own bid by promising to pay £10 million to the Royal Bank of Scotland in fees, were revealed to his rivals, breaching his confidentiality clause.

Despite that, on Tuesday Lim improved his original bid, believed to be worth the £300 million NESV wishes to pay, to £320 million, plus £40 million for manager Roy Hodgson to spend in the January transfer window.

Lim's offer, through his Meriton vehicle, would wipe Liverpool clear of debt and is funded entirely from the former stockbroker's own $1.6 billion (£1 billion) fortune.

He said in a statement: "My offer pays off the existing owners' bank acquisition debt and also frees the club of its own bank debt. If the board accepts this offer, the monies are available immediately, thereby removing the threat of administration."

Lim accepts he remains an outsider to land the club – his bid would be considered only if NESV walk away or Liverpool go into administration – but he is determined to push ahead with a deal.

Though his background running Manchester United-themed cafés in the Far East is unlikely to impress Liverpool fans, it is thought, should he land the club, he would pull out of that deal when his contract expires in 2012.

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