Takeover Bid - Trust Update

[newtonfox]

Nottingham Fox has confirmed above that Andrew Taylor even said it

but AT will say that as he is still chairman at the min and has look to be covering all the bases :icon_wink

 

[Durham Fox]

Perhaps the following is true.

MM offers the shareholders 25p over the value of their shares but that is to be paid in 2 installments half up front and half 'when' we get to the Premier League.

The money that he is actually putting forward does not go into the club at all (that £1.25 share purchase is MM outlay) as it goes to the shareholders.

Therefore any money beyond that investment/purchase is in the form of loans and the shareholders argue do we want to go into debt again and risk long term damage should MM pull out for any reason.

In business terms you can argue the good/bad aspects for both parties, but IMO its all weighted in MM's favour - He gets control without any significant investment into the club, his only outlay is to gain control.

Anyway, chances are the board will reject this proposal and ask MM if he would be interested in investing the capital into the club rather than a share purchase. If he did this then he would get a majority shareholding as the club would release/create shares for the value of the investment (ie in excess of 50%).

I'm not sure of the legality and the rest of this practice but in essence if this was the case then as he wouldn't be paying off the shareholders then the club (ie RK) would get the investment for the playing side.

However, its unlikely this will be accepted by MM.

Perhaps but why would they still be nowhere near an agreement with a board meeting (to presumbaly decide on the bid) looming.

In any case it sounds like a very cosy little arrangement for the current board to not lose control but make it look like theyve doen everything they can. Wankers.

 

[Melton Fox]

If he did this then he would get a majority shareholding as the club would release/create shares for the value of the investment (ie in excess of 50%).

I can't see MM wanting anything but 100% of the profits.

It's his money and hard work that will utlimately achieve our success, why should he share it with a bunch of people that have flatley refused to put any more money in and have taken the club nowhere in 4 years, I wouldn't

 

[Durham Fox]

I can't see MM wanting anything but 100% of the profits.

It's his money and hard work that will utlimately achieve our success, why should he share it with a bunch of people that have flatley refused to put any more money in and have taken the club nowhere in 4 years, I wouldn't

It's not MM's style and the board bloody well know that. If this is true they will have some serious questions to answer

 

[OldGit]

Perhaps but why would they still be nowhere near an agreement with a board meeting (to presumbaly decide on the bid) looming.

In any case it sounds like a very cosy little arrangement for the current board to not lose control but make it look like theyve doen everything they can. Wankers.

Hang on, Duzza, don't get in a lather! All Dunc did was put forward yet another hypothetical idea. You can't blame the board for that (unless he is a pseudonym for a memmber of the board of course!)

 

[Durham Fox]

Hang on, Duzza, don't get in a lather! All Dunc did was put forward yet another hypothetical idea. You can't blame the board for that (unless he is a pseudonym for a memmber of the board of course!)

Its a very detailed description of events and he has his sources.

 

[homer]

Hang on, Duzza, don't get in a lather! All Dunc did was put forward yet another hypothetical idea. You can't blame the board for that (unless he is a pseudonym for a memmber of the board of course!)

Likes to work up a froth, don't you DF ?

 

[Durham Fox]

Likes to work up a froth, don't you DF ?

Too feckin right

 

[Dunc]

I can't see MM wanting anything but 100% of the profits.

It's his money and hard work that will utlimately achieve our success, why should he share it with a bunch of people that have flatley refused to put any more money in and have taken the club nowhere in 4 years, I wouldn't

I don't think that is an issue, i think the issue for the current board is that they don't want to put the club in a position where should MM leave for a better club (he's done it before) we are up poo creek with out a paddle because we would be in more debt than now and probably in a situation where another rallying call for investors would be needed (ie Back to square 1/ 2002).

So the argument is, do you trust a man who is clearly not a leicester fan, who hasn't had unbridled success everywhere, makes poor management decisions (Perrin etc), who isn't putting £25million into the club, instead just buying shares out to own it for a minimal outlay and has no guarantee of promotion.

Or do you think that he is a footballing success, whose experience and nous will lead us to the Prem and that he will stick with us even if it doesn't go to plan.

Its not cut and dry that if he comes we will get promoted, or that he has made any commitment to paying off debts or providing funds for players. The Mockery has a clear agenda, but that may not be for the benefit of the club.

 

[Melton Fox]

I don't think that is an issue, i think the issue for the current board is that they don't want to put the club in a position where should MM leave for a better club (he's done it before) we are up poo creek with out a paddle because we would be in more debt than now and probably in a situation where another rallying call for investors would be needed (ie Back to square 1/ 2002).

So the argument is, do you trust a man who is clearly not a leicester fan, who hasn't had unbridled success everywhere, makes poor management decisions (Perrin etc), who isn't putting £25million into the club, instead just buying shares out to own it for a minimal outlay and has no guarantee of promotion.

Or do you think that he is a footballing success, whose experience and nous will lead us to the Prem and that he will stick with us even if it doesn't go to plan.

Its not cut and dry that if he comes we will get promoted, or that he has made any commitment to paying off debts or providing funds for players. The Mockery has a clear agenda, but that may not be for the benefit of the club.

It will always be a risk and I do understand your points, to such an extent that I honestly can't answer your question.

But, my gut feeling says there is more chance of MM being good for the long term future of the club than bad

 

[drew]

The Mockery has a clear agenda, but that may not be for the benefit of the club.

In the same light that could be said of the board.

I have a feeling MM's bid will be rejected and a small injecton of cash will be made, plus Stearman and Hume will probably be sold to raise extra funds.

I should imagine we would get about 3 million for those to and a 2 million injection willl allow a couple of 'experienced' journeymen to arrive and do **** all.

The current board have taken us as far as they can go. Its time for new blood to come in and see what they can do. The board are loaning the club money by virtue of a share issue. If it was an injection they shouldn't receive shares.

 

[OldGit]

The board are loaning the club money by virtue of a share issue. If it was an injection they shouldn't receive shares.

Are they? All Melton said was he had a rumour, possibly true - possibly not, that they had come up with some money. No mention of them getting more shares.

But even if that were the case (say by a rights issue) it would NOT be a loan - shares are risk capital, with no right to get it back or to receive interest. Any other way of putting money in would be a loan - or a donation!

 

[Dunc]

In the same light that could be said of the board.

I have a feeling MM's bid will be rejected and a small injecton of cash will be made, plus Stearman and Hume will probably be sold to raise extra funds.

I should imagine we would get about 3 million for those to and a 2 million injection willl allow a couple of 'experienced' journeymen to arrive and do **** all.

The current board have taken us as far as they can go. Its time for new blood to come in and see what they can do. The board are loaning the club money by virtue of a share issue. If it was an injection they shouldn't receive shares.

I can guarentee that no players need or will be sold unless RK wants to sell them even if MM doesn't come in.

As said previously the major attraction in the MM bid is potential (not realised as yet) for refinancing/paying off the stadium to release funds for RK.

 

[BOB HAZELL]

Perhaps the following is true.

MM offers the shareholders 25p over the value of their shares but that is to be paid in 2 installments half up front and half 'when' we get to the Premier League.

The money that he is actually putting forward does not go into the club at all (that £1.25 share purchase is MM outlay) as it goes to the shareholders.

Therefore any money beyond that investment/purchase is in the form of loans and the shareholders argue do we want to go into debt again and risk long term damage should MM pull out for any reason.

In business terms you can argue the good/bad aspects for both parties, but IMO its all weighted in MM's favour - He gets control without any significant investment into the club, his only outlay is to gain control.

Anyway, chances are the board will reject this proposal and ask MM if he would be interested in investing the capital into the club rather than a share purchase. If he did this then he would get a majority shareholding as the club would release/create shares for the value of the investment (ie in excess of 50%).

I'm not sure of the legality and the rest of this practice but in essence if this was the case then as he wouldn't be paying off the shareholders then the club (ie RK) would get the investment for the playing side.

However, its unlikely this will be accepted by MM.

Sounds a likely scenario to me.....

 

[Durham Fox]

Sounds a likely scenario to me.....

Marvellous

 

[homer]

Sounds a likely scenario to me.....

Oh bollox

 

[Durham Fox]

I hope theyve got some good securoty down there on Saturday because the fans are going to go mental.

 

[drew]

Sounds like the board are going to **** things up, congratulations.....

Here's to 20 years of mediocrity.

 

[homer]

Here's to 20 years of mediocrity.

If we last that long

 

[MHS]

What a joke...