Formal Bids; Facts & Media Reports (Oxymoron)

[davieG]

Just to clarify what was said today

The term "last chance for Tigers" was used. The basis of the comment was that it is doubtful that if MM or another large investor took over the club that they would want to share the ground, it doesn't mean the Trust was stating a case for or against ground sharing.

It has been stated on another message board that the term "put a bid in" was used. I do not recall saying it and doubt I would have used that phrasing, but with live radio words can come out not as meant on occasions.

Context wise it related to us e-mailing members for views on ground sharing, during the interview in relation to the results of the questionnaire we sent out based on the replies up to last night, shows less support for ground sharing than in 2004 when we consulted members previously. The whole purpose of that exercise was so we had a clear picture of our members current views & didn't make any decisions based on members thinking from 2 years ago.

In summary there is no Trust policy on ground sharing, this will be decided after the weekend (as we set a deadline of a week to respond) by our members feedback, that is democracy.

We intend to put more detailed views out on our website tomorrow night.

__________________

Foxes Trust

Your Club Your Voice

[davieG]

Infromation Supplied by Chimp:

Here's a direct link for the EMT interview for your 'Media Facts' thread...

http://news.bbc.co.uk/nolavconsole/ukfs_ne..._wm_6130382.stm

[Daggers]

Takeover Bid - Trust Update

Written by Trust Board

Friday, 10 November 2006

The role of the Foxes Trust is to act to ensure the long-term viability of the club and that is our prime concern with any potential future owner’s proposals.

Over the last week the Foxes Trust Board has sought to question the large assumptions being made about the Milan Mandaric bid via media interviews and message board posts.

This has been viewed by some fans as the Trust being anti Mandaric, this is not the case however it was in part to add balance to the coverage of current situation, where the Leicester Mercury articles, in particular Bill Anderson’s, appear to be very pro Milan Mandaric.

The “£25m†bid, which was first utilised by a journalist known to work closely with Milan Mandaric, has continually been utilised by the media ever since. Both Milan Mandaric and the Leicester City board have not provided any breakdown of the bid, and as “other options†are being discussed, this is quite understandable, however the Trust Board feels it is important for fans to have a more in depth understanding of what this (or any other bid entails).

For the Milan Mandaric bid it has been stated that the shareholders will get their money back, and although the timing of payment appears still in negotiation, that accounts for around £6.4m....

The largest part of the bid would appear to relate to the cost of the stadium, however the Trust Board is seeking further information as to Milan Mandaric’s financial plans in this area, as it could consist of a number of options:

a) Outright cash purchase (generally believed to be unlikely)

b) Retain existing Teachers finance arrangement (if so then any figures relating to the stadium within the bid should be removed, as it just maintains the current position)

c) A new financial arrangement for the stadium being utilised, replacing the Teachers funding (in which case on what terms & is the loan a personal one or one to the club, if to the club then only any real savings achieved should be used in the bid figure)

d) Future ground sharing (we have no knowledge of Milan Mandaric’s views, however with a single owner of a club it would be easier for this to be approved than getting 47 local shareholders to back it)

In his most recent interview, Milan Mandaric has stated “he would do what was necessary†to fund the playing squad, the Trust would like know at least the minimum figure that he has in mind.

The Trust Board welcomes Milan Mandaric’s expressed intentions to visit Leicester and meet with Supporters in the new future. We would welcome a face to face meeting where we can explore in depth his proposals for the future of our club.

At this point the Milan Mandaric bid is the only one “on the table†and hence the only bid the Foxes Trust can dissect and question. Once any further “option†is revealed, the Trust board will equally challenge the assumptions of that bid and seek clarification on any grey areas, therefore adopting a consistent approach to any proposal to take the club forward.

To make it clear, the Foxes Trust is not backing or opposing any bid at this point until we have sufficient information to make an informed decision. The Trust Board will consult with members as much as possible without breaking any confidentiality of the bidding process.

This week the Trust has consulted it’s members to see how important they feel local ownership of the club is to them individually and also to obtain a current viewpoint on ground sharing in case any of the “ways of taking the club forward†include this within their plans. The Trust Board felt this was required, as the previous consultation with members on this topic was around 2 years ago and we needed to see if views had changed particularly with a larger investor on the horizon. The replies are currently being compiled.

Trust board members are also responding to members who submitted their detailed views as well as answers to the questions.

[davieG]

The Mercury

Milan Mandaric will discover a week today whether his £25million takeover bid for Leicester City has been successful. The 48 shareholders will discuss his proposals at an extraordinary general meeting on the morning of the Championship match against Preston North End.

The historic meeting will take place at the Walkers Stadium, making it an even bigger day off the pitch than on it.

Mandaric, who is out of the country at the moment, says all he can do now is wait for the City board and shareholders to either accept or reject in principle a bid which appears to have overwhelming public support.

The Serbian/American businessman said: "There is nothing more for me to do at the moment, and it is entirely up to the board and the shareholders now.

"The negotiations have gone very well and I am optimistic that my bid will be accepted, although the club say they might have alternatives to consider.

"I don't know what these might be. All I can say is that they know what I am proposing and, from what I feel about the people I have dealt with, they are committed to doing what is best for the future of the club.

"They will do what they think is right and, if everything works out, I will look forward to working with them to bring success to the club, which means getting back into the Premiership where I think the club should be."

The vital importance of this epoch-making, or breaking, decision is not lost on anyone, least of all the prime mover in the negotiations, City chairman Andrew Taylor.

In his programme notes for today's Championship match at home to Plymouth, he writes: "The next phase of the future of Leicester City is likely to be defined in the coming weeks.

"The club has passed from private to plc ownership and back again in the past 10 years.

"Just three years ago, a community of local investors, Leicester City fans all, dug deep and saved the football club. That may sound all rather grand but that's exactly what happened.

"They want what is best for Leicester City.

"They acted selflessly in 2003 and you can be assured they will do the same thing when they meet to discuss the options available to take the football club forward."

well a good home win and a new owner,great xmas present

[davieG]

Andrew Taylor Interview

[Daggers]

Latest from The Trust

Takeover Bid - Trust Update (2)

Written by Trust Board

Sunday, 12 November 2006

Prior to the Plymouth game, the Foxes Trust Board held an informal meeting for members which provided the opportunity for members to give their personal viewpoint on the current situation and question Trust board members about the latest position. The Trust board would like to thank members who came along or sent apologies and their viewpoint via e-mail.

While many members primarily attended the meeting to gain information, a number of members expressed their reservations about the Mandaric bid, with particular reference made to his track record at other clubs where minimal cash investment took place. Other members expressed their disappointment with the coverage by the Leicester Mercury in particular the frequent reference to a £25m bid which led some members attending to believe it was a cash amount being offered.

The Trust can confirm it will be attending the LCFC shareholders meeting on the morning of the Preston game, however the exact format of the meeting is yet to be finalised. The Trust board will meet later this week once the content of the shareholder meeting becomes clear.

Picking up on questions being raised on message boards, a poster asked whether it was possible that Mandaric could own the club before the Preston game kicks off. This isn’t the case, as a due diligence process would commence if the shareholders agreed to a takeover, and this process normally takes around a month before completion.

Over the last couple of days fans have started to look at other aspects of the potential takeover wondering what will happen to season tickets and match day prices should the Mandaric bid be successful. The Trust is involved in a Fans Consultative Committee Sub-Group focusing on this ticket prices for next season, with the early indications that match day prices could fall, while season tickets may be on sale much earlier, however all this could be completely reviewed if the takeover goes ahead.

[davieG]

Monday, 13 November 2006 Foxes Trust Press Release 13/11/06

Following the news the bid for Leicester City Football Club by Milan Mandaric is to be put before shareholders prior to the match with Preston on Saturday the Foxes Trust are urgently seeking reassurances from Mr Mandaric on a number of key issues. The Foxes Trust welcomes the recent comments by Mr Mandaric that he recognises the important role the clubs' supporters have in the success of the football club.

Foxes Trust Ian Bason commented "When the club came out of administration back in 2003 former Chairman Jon Holmes acknowledged the role played by supporters in saving the club & the importance of supporter representation at the highest level within the club. As a result the Trust holds an Observer role at all club Board meetings."

Bason continued "Should Mr Mandaric's bid be successful the Trust urge him to, at the very least, continue to uphold this important commitment to the supporters of Leicester City. It is vital for the supporters at any club to have confidence in people running their football club. In recent months the Trust has held discussions with club Chairman Andrew Taylor with a view to facilitating a full Director position on the Board of Leicester City Football Club. We sincerely hope that similar discussions can be held with any new owners of the club at the earliest opportunity....

While acknowledging the details of any bid must remain confidential the Trust Board firmly believes the supporters of Leicester City are entitled to broadly know what any bid for their football club contains. Trust Board member Ian Guyler explains "Headline figures of £25m raise expectations among supporters. However it is imperative for supporters to be aware how much of that will, ultimately, have to be repaid in the form of loans etc. In our view it unrealistic to expect businessmen like Mr Mandaric to fund the purchase of the Walkers Stadium & simply hand it over to the club. We ask Mr Mandaric to explain to supporters if he intends to fund the purchase of the Walkers Stadium & how this will be financed."

Trust Board Member Matt Davis confirmed the Trust are seeking a meeting with Mr Mandaric "We would welcome a face to face meeting where we can explore in depth his plans for the club. We believe such a meeting should take place at the earliest opportunity to enable the Trust Board to make an informed decision on his bid for the football club."

Meanwhile Trust Chairman Ian Bason confirmed the Trust was unlikely to hold a ballot of members prior to the shareholder meeting "Ideally the Trust Board would have preferred to have had a full ballot of members before voting on the bid by Mr Mandaric. However bid confidentiality & the timescales involved mean this is impractical. We will however update members further later in the week & ask members to continue to contact us with their views"

Finally the Board of the Foxes Trust wish to make clear to members & fellow supporters no decision has yet been made by the Board in respect of supporting any bid or financing options that may be put to shareholders on Saturday.

End of Press Release

Last Updated ( Monday, 13 November 2006 )

http://foxestrust.co.uk/site/index.php?opt...44&Itemid=2

[Daggers]

'I WON'T BE THERE'

BY BILL ANDERSON

WWW.THEBLUEARMY.CO.UK

10:15 - 14 November 2006

Milan Mandaric has opted to stay away from the historic meeting which will decide on his £25million takeover bid for Leicester City.

The Serbian-American tycoon says it would be "inappropriate" for him to be at the Walkers Stadium on Saturday when the 48 shareholders give their verdict at an extraordinary general meeting.

But Mandaric, who tabled his bid a fortnight ago, is still confident of a positive outcome.

It was thought Mandaric might be at the ground in person - either to deliver his proposal or to hear the outcome - before City's Championship clash against Preston North End.

But he said: "No, I will not be there. It is up to the board and the shareholders and, as I think they are good people, I have every confidence they will do what is right for the good of the club.

"If it all goes the right way for me then I will come to Leicester after that, but to be there this Saturday would be inappropriate.

"I have made my approach and they either accept me or reject me for something they may feel is a better offer, although I do not know what their alternatives may be.

"I do not want to confuse the situation for them. I am quite sure they know what they are doing."

The 11am timing of the meeting means the fans at the Preston clash will know by kick-off whether the deal is on or off and, while there have been misgivings from some quarters, the whole issue is nearing a resolution with Mandaric's chances looking very promising.

The opening of the transfer window in January is significant because, if City do not accept Mandaric's offer, there is very little chance of City boss Robert Kelly having any bargaining power for new players.

City would also remain wide open to approaches from other clubs for their best players.

So timing is of the essence. Mandaric has, in his own words "done all I can do", and no-one will more eagerly await the outcome on Saturday morning than him.

He said: "They have the offer and now they have the decision to make on Saturday. I will just have to wait to hear what happens along with everyone else."

[Daggers]

Trust Seeking Answers

Written by Matt Davis

Tuesday, 14 November 2006

Since news broke of the bid by Milan Mandaric for ownership of Leicester City the Trust has raised questions about the bid & his plans for the club. This has been viewed by some fans as being against Mr Mandaric & his bid. The Trust has also been accused of speaking on behalf of all City fans.

Below Trust Board Member Matt Davis answers these points on behalf of the Trust….

To take the 2nd of these points first the Trust does not, never has or would even begin to suggest that we represent all City fans. However with almost 1000 supporters who are members the Foxes Trust IS the largest single fans organisation at the club.

The Trust also owns 151,000 shares in Leicester City FC. The shares were purchased mostly with the money raised to help save the club from bankruptcy in 2002/3. Some of this money was put in by fans who are either are no longer members or who never chose to join the Trust, but who still put money into a bucket to help save our club.

When a bid for ownership of the club is received it is the above shares, purchased with the supporters money, which the potential new owner is seeking to acquire – along with shares held by other members of the Lineker Consortium & investors who have since put money into the club.

The Trust does not hold shares in the club for financial gain – but to ensure compliance with corporate governance legislation & principles through access to audited yearly accounts. As a shareholder the Trust can raise questions about the yearly accounts at the company AGM.

So clearly when a bid is received for its shares the Trust Board is duty bound to ensure the person/s seeking to acquire them has the best interest of the club & its supporters to the fore….

And when a potential takeover would mean losing the accountability to 40+ shareholders & a ten man Board of Directors to a single owner accountable only to themselves the Trust will strive to secure the best deal possible to safeguard the future of Leicester City.

At the heart of any takeover of primary concern to the Trust, & City fans generally, are issues such as ownership of the Walkers Stadium, securing other assets such as the Belvoir Drive facility, funds available to the manager & the new infrastructure of the non playing side of the club*. We also want to establish how press reports of a £25 million bid reconcile with the actual bid on the table.

While there has been much comment from Mr Mandaric he is yet, to the best of our knowledge, to provide detailed answers to the above questions - either to the club or to fans via the media. Therefore the Foxes Trust has now sought clarification directly from Mr Mandaric’s representatives.

The above are all valid questions but that does not means that the Trust is against Mr Mandaric & his bid for the club. Simply the Trust is attempting to give an independent & balanced view of the proposed takeover.

Finally some fans have questioned what the role of the Trust would be should Mr Mandaric takeover the club.

Quite simply we would welcome the opportunity to work with him to try to ensure consultation with all fans on major issues & to, where appropriate, continue to use funds for the benefit of the club & its supporters.

*Note – We hope to explore these issues in greater detail on our website on Thursday.

Last Updated ( Tuesday, 14 November 2006 )

[davieG]

14 November 2006

Posted on the Fox Forum by the Foxes Trust in response to a query from:

jackieguaccamole

Question for the Trust

As I mentioned in response to your last post, please can you explain why the issues and questions you are so keen to ask MM have not been important enough for you to ask the present board..

Especially as only now are they considering putting in more money, which I would imagine is becasue they know if MM does buy he club they will all be out of a job or position within the club?

This is a serious question which would help me and others understand your positioning...

Foxes Trust:

Because we have asked and know the answers from the present set up

Ownership of the Walkers Stadium

- would remain with the Teachers deal (unless ground share went ahead). Without additional investment, a significant player sale would be likely in the summer, maybe sooner would depend on form and hence crowd size until Jan

Securing other assets such as the Belvoir Drive facility

- already secure so no issue

funds available to the manager

- maybe a loan signing if high injury level in one area of the side, but that's all

New infrastructure of the non playing side of the club

- without additional investment, club would have to look at costs, they haven't reduced in line with revenue

[Guest]

15/11/06

http://home.skysports.com/list.aspx?hlid=4...+TAKEOVER+TALKS

"Leicester City have confirmed they have entered "very early stage discussions" with a view to a possible takeover.

The identity of the interested bidder remains unknown although former Portsmouth chairman Milan Mandaric had bid for The Foxes.

Mandaric tabled a £25 million offer for the Championship outfit with the club set to speak to shareholders about the next course of action.

More to follow."

[davieG]

Posted by Louise 15/11/2006

Transcript of the RL report:

"The possibility of Milan Mandaric becoming the new owner of Leicester City has taken a major step forward this evening. Speaking back on Saturday the Foxes Chairman Andrew Taylor had said the club wouldn't rush any decision, 'the decision that needs to be taken is not just one about the financial situation, compelling and important though that is, it's about the direction of the whole club, of where the football club goes'. Now BBC Radio Leicester understands the club hope the former Chairman of Portsmouth will meet their assurances ahead of Saturday's Extraordinary General Meeting. The Foxes major shareholders will be given two options, to accept Mr Mandaric's offer or dig deep in their own pockets for a rights issue and come up with substantial investment themselves."

And this from John Barber

Hi All,

I hope I can clear this up for you all. The announcement made by Leicester City today was simply to inform shareholders formally that they are negotiating with someone about a takeover.

The club HAVE to make a formal regulatory statement of the offer.

There is effectiveley nothing new in all of this ... just the club satifiying the takerovers and mergers people.

It doesn't mean that anything new has happened today, and you shouldn't read too much into it.

Having said that, it certainly does look like the Manadaric bid is very close to getting the nod.

If they can get guarentees about future financing and transfer budgets etc. then that will go to the shareholders on Saturday.

The only other option they will be given is to undertake a huge Rights Issue to bring in a massive investment from the current shareholders.

Keep an ear to the radio Saturday, and as soon as anything develops I'll let you know.

I hope this helps.

Cheers

http://boards.rivals.net/default.asp?sid=8...ytoid=530750477

[davieG]

From the Foxes Trust Website;

In this article we look at some important issues raised by Trust members in respect of the bid by Milan Mandaric for the takeover of Leicester City FC.

Ownership of the Walkers Stadium – For the club to move forwards re-structuring the debt on the Walkers Stadium is paramount. While the club continues to be in the Championship repayments to Teachers simply serve to pay interest on what is in effect a mortgage. Only a sustained period of Premiership income would reduce the debt & eventually bring ownership of the stadium back to the club.

Initial media reports on Mandaric’s bid indicated the bid included the purchase of the Walkers Stadium as part of the purchase price for the club. This led some supporters to believe ownership of the stadium would come back to the club & the debt on it would be cleared.

However it now appears the value of the bid does not include for the purchase of the stadium. That does not mean necessarily Mandaric would not provide finances buy the stadium - but this will have to be repaid in the form of loan or other such agreement. The debt will still exist & until such time as it is repaid ownership of the stadium will not belong to LCFC.

In that respect nothing changes, however if the terms of any loan to purchase the stadium are more favourable than the current deal with Teachers, then clearly this beneficial to the club & would presumably be welcomed by shareholders & fans alike....

Funding of the Playing Squad – As with the ownership of the Walkers Stadium supporters were led to believe monies would be available to strengthen the playing squad as part of the purchase of the club. However as the bid appears to only guarantee shareholders their initial investment then monies for strengthening the playing squad will have to come from elsewhere. Again Mandaric could finance this but, as with a loan to buy the stadium, ultimately it would have to be repaid. The difference here is that this would increase the debt on the clubs’ balance sheet.

Alternatively Mandaric may decide to finance both the purchase of the stadium &/or funding of the playing squad secured against income the club would receive from being promoted to the Premiership. This raises two points – would this adversely impact on funds available to strengthen the squad to compete in the Premiership? Or should promotion still prove to be elusive who has liability for paying the loan – the club or Mandaric?

A third option for Mandaric would be to buy the club, provide finances for both or either of the above & then seek to recoup his investment with profit when selling the club on at some point in the future. In that scenario the risks clearly lie with Mandaric & would not burden the club with other debts/liabilities if the desired success is not forthcoming.

Protecting Current Assets – There are instances in football where entrepreneurs have taken ownership of a football club & sold off assets such the ground or training/Academy facilities for example & made huge profits from the resulting property deal. Those profits are not re-invested back into the club but often invested in another business. In short this is known as “asset stripping”Foxes Trust wishes to make clear we are no way suggesting these are Mandaric’s intentions & to the best of our knowledge there is no evidence of asset stripping at any of his former clubs.However the Trust Board believe it is right that supporters are aware of such possibilities – regardless of how remote it might be.

Management Infrastructure – If the club transfers to single person ownership the current off field management structure of the club will change. The current Board of Directors would be replaced by a Management Board made up of probably no more than four person appointed by Mandaric. The Management Board would responsible for the day to day running of the club, although Mandaric could veto any decision made by the Management Board if he so desired.

Of importance here is would Mandaric bring in people from outside the club who my have no connection with the club or seek to make appointments from the current Board of Directors?

Ideally the Trust would like to see a combination of both to bring in some new ideas whilst retaining some continuity from the current Board of Directors.

Irrespective though of how the Management Board would be made up the Trust would be seeking to ensure any persons involved in the running of the club would not compromise the “Fit & Proper Persons” criteria as set out by the Football League either now or in the future.

Above we have looked at some concerns raised by Trust members & tried to give a balanced view on what options Mandaric’s could take should his bid be successful. The Trust urges Mr Mandaric to outline his business plan for the club to allow both shareholders & fans to make their own conclusions on his bid for our football club.

In an article later this week the Trust will explore what alternatives to the Mandaric bid the Board of Directors might look to put before shareholders at the EGM this weekend.

News Update – Direct dialogue between the Foxes Trust and a representative of Mr Mandaric has commenced.

Last Updated ( Wednesday, 15 November 2006 )

[davieG]

Foxes Trust

Looking at the Alternatives

Written by Nigel Ritchie Thursday, 16 November 2006

Having looked at issues surrounding the Mandaric bid in this article the Trust looks at various alternative funding options the City Board might put to shareholders at the EGM this weekend.

Back in June then newly appointed City Chairman Andrew Taylor answered questions from Trust members re the clubs finances & what he & his colleagues on the Board were doing to bring additional finance to the club.

Below we repeat some of Andrew's answers & ask if they are still & how they compare, favourably or otherwise to takeover bid…

In answer to a question about the level of the clubs' debt & owning the Walker Stadium Andrew replied…

"First, let's be clear about the level of debt. The only (significant) debt the club has is in the stadium. It's not a case of clearing debts and then working on buying the stadium. It's simply a case of working out what we do to fund the acquisition of the stadium. One of the ways to do it was to joint venture our interest in the stadium. There was some opposition to the Tigers ground share. Much of the criticism was well intentioned but emotive and ill informed when the underlying objective was to find a way of protecting the long term future of the club at the Walkers. The ground share remains one of the ways that we could raise the capital to do it......"

Trust comment: Clearly then the issue of ground share is something Andrew Taylor was not (at that time) ruling out. With that in mind & knowing when members were canvassed two years ago only just over half were in favour we decided to canvass opinion again in light of the bid by Mandaric....

What would be the benefit of a ground share compared to the Mandaric bid? It depends on how Mandaric would fund purchase of the stadium

(see link - http://foxestrust.co.uk/site/index.php?opt...46&Itemid=2 ).

But the main benefit is that ownership of the stadium – or at least 50% - it would immediately come back to the club & the debt would be vastly reduced.

The draw back is the club would never be likely to entirely own the stadium again – at least for the foreseeable future.

Responding to two questions about further investment from existing shareholders Andrew commented…

"Maybe but certainly nothing in the order of the £6m-£7m that we received as a parachute last season……I think existing shareholders have been very generous already with many taking up the rights issue that took place a year or so ago. I take the view that we have to demonstrate new skills on and off the pitch. On the pitch RK has to maintain the momentum that he and his team generated over the last 16 games of last season and off the field we have to be sharper in every way. We have to change the trajectory of LCFC and our existing investors may feel more confident about our ability to use the capital well if they see greater professionalism in the management of the club's affairs."

Trust comment: From the answers above it appears a further rights issue, while generating additional income, would not generate huge sums in the region of tens of millions of pounds that a wealthy owner might invest. Crucially however any monies raised via a rights issue would be additional income that would not be repayable – unlike a loan from a wealthy owner such as Mandaric.

There maybe other financing options the Board of Directors have been exploring prior to the bid by Mandaric being received. The decision for the Board & shareholders alike do these options either singularly or combined offer a better financial direction for the club than the bid by Mandaric?

News Update - The Trust has continued dialogue with a representative of Milan Manderic today posing a series of questions, some of the answers will appear in the media on Friday which should clarify elements of the bid & his plans for the club, dialogue is ongoing however assurances have been given to the Trust about their involvement in the new structure of the club should the bid be approved

Last Updated ( Thursday, 16 November 2006 )

[davieG]

Posted By Louise

RL News:

"Presenter: Leicester City's Board of Directors will meet this evening to make plans to recommend Milan Mandaric's bid to the shareholders. An EGM of shareholders will meet tomorrow to consider the offer, well John Barber has been following the story... John, what do we know about what's going to happen?

Barber: Well the board met with Mr Mandaric yesterday to try and get further reassurances about his plans for the future of the club, they now think that they're as close as they'll ever be to recieving that and will be asking shareholders to back Mr Mandaric's takeover of the club. The Board say it's now a credible bid, from a credible buyer, who they feel is far better placed for a push to the Premier League than the curren board themselves.

Presenter: And what about the news that it could take three weeks to get a decision?

Barber: Well, as was revealed on the football forum on Monday, the shareholders will be allowed 3 weeks to decide if they want to back the Mandaric bid. Nothing definitive will be announced tomorrow after the EGM tomorrow, and the board will have to work to lobby any shareholders who aren't convinved by the offer from the Serbian businessman."

[Nationwider]

Fri 17 Nov 06 - Official statement from Andrew Taylor on lcfc.com - fleshes out Barber's story

Statement Issued By Andrew Taylor, Chairman, Leicester City Football Club

Let us be quite clear. There is one overriding factor foremost in the hearts and minds of all Leicester City Football Club shareholders.

The complete and total focus at all times has been and will continue to be to represent, protect and serve the best interests of our football club.

I doubt there has been a more emotive debate about Leicester City at any time in the past three years.

Not since it was the same shareholders who rescued the club from administration who now have a key decision in shaping the future of this club again.

It is a major responsibility and one that I know will be discharged in a careful and measured manner.

Our shareholders, and that includes our supporters as well through the Foxes Trust, are charged with safeguarding the club's future.

This is a weighty task.

We must think of the club's future; not just this season but also those to come.

When the club came out of administration it did so through the support of former players, local businessmen and women and a very wide cross-section of the community of Leicestershire. Fans all.

It really was a tremendous display of community spirit.  Without that display, there might not be a Leicester City right now.

Football, however, never stands still. The club is now faced with a different set of challenges and circumstances.

When I arrived as chairman at the end of last season, it was quite clear that one of the immediate challenges facing the football club was the impact of falling revenues.

This season marked the first season in which we have had no Premiership television monies. Just to be clear, the football club "lost" approaching £7m in parachute payments.

We are now in our third consecutive season of football outside the top flight of English football.

That is the first time we have been so since the early 1990s. There is a price to pay for that absence.

Therefore, the Board has been actively looking at a number of ways of generating increased investment into the football club.

Naturally, and understandably, there has been considerable focus on an offer tabled by Milan Mandaric to buy the club.

Mr Mandaric's footballing credentials are outstanding. He has transformed the fortunes on and off the pitch at Portsmouth Football Club.

During my many meetings with him his knowledge about football has shone through and he has a burning ambition to help steer our football club into the Premier League.

I am sure you will appreciate that the exact content of our discussions must remain confidential at this time as should the other options we are exploring to generate additional investment.

Mr. Mandaric's offer and the alternative proposals will be discussed by shareholders at a meeting on Saturday morning. Because of the formalities and complexities it must be understood that no definitive decision will be reached at the EGM on Saturday in respect of any of the proposals.

In the event that following the shareholders meeting Mr. Mandaric wishes to pursue his indicative offer he must circulate a formal offer document and shareholders will have a minimum period of 21 days to accept or reject it. The alternative proposals will also have their own time lines as required by the law. We cannot get ahead of ourselves and try to rush this.

As a public limited company the club is bound by well-established principles of governance and the Directors are responsible for ensuring that due process is followed. It may seem tortuous to those seeking clarity of direction but it is nonetheless a process understood by those involved.

Finally as a shareholder myself I would reiterate that the best interests of the club will be pre-eminent in my decision and I am sure in the decision reached by my fellow shareholders.

[davieG]

From the Merc

Leicester City's board of directors are backing tycoon Milan Mandaric in his £25m takeover bid for the club. The recommendation, which was agreed at a special board meeting last night, will be put to the extraordinary general meeting of shareholders later today.

The meeting of the 48 shareholders is being held before this afternoon's clash with Preston at the Walkers Stadium.

This is the positive step that the fans have been waiting to see.

Legal technicalities mean that today's EGM cannot make the final decision on the offer, but the board have made their position clear.

One board member told me: "We felt it was about time we took the lead in this. The shareholders elected us on to the board to make decisions and act in what we feel are the best interests of the club."

This endorsement of the Mandaric deal is a significant step - the 10 members of the board hold around a third of all the shares.

It will now be up to the other shareholders to fall in line behind the board, or jeopardise the whole deal by going against the recommendation.

The key to the deal is the level of shareholder support for the offer. If 90 per cent of them agree, Mandaric can then compulsorily purchase the remaining 10 per cent of shares from reluctant stakeholders.

Anything less than that, even with a controlling interest, would need further negotiation.

I understand that, unless Mandaric is assured of that 90 per cent in favour from today's meeting, he will pull out of the deal.

So while today's lunch-time meeting is not the final word, it is very much make-or-break.

A green light for the offer means that the matter moves into the hands of each side's legal teams with Mandaric's experts going through City's finances. Then, if all is well, it would just be a matter of completing all the complex legal formalities.

Although the whole issue does seem to have dragged on, the takeover could still happen in time for Mandaric to back Leicester City manager Robert Kelly in the transfer window in January.

The club will issue a statement after today's meeting so that City fans at the game should know exactly where the club stands on the issue.

The overwhelming majority of the Blue Army seem very much in favour.

It remains to be seen if the shareholders feel the same as the fans and the board.

[Fez of Mahrez]

Official Leicester City Statement

An extraordinary general meeting of shareholders was held by Leicester City Football Club Plc at the Walkers Stadium today.

Shareholders debated a number of issues in relation to generating increased investment into the football club and have therefore welcomed Mr Mandaric's approach.

Milan Mandaric's approach has been given the green light and he will be granted access to the clubs books for the period requested by him.

The shareholders wish to make it clear that they have, are and will continue to act in the best interests of the football club at all times.

Their paramount concern is to protect, safeguard and develop the future of our great football club.

Further announcements will be made in due course.

[Daggers]

BBC Text

BBC Video Interview

Foxes 'welcome' Mandaric approach

Milan Mandaric appears to have taken a step closer to becoming the new owner of Leicester City after shareholders officially welcomed his approach.

The former Portsmouth chairman met with officials last week, when he is thought to have offered £6m to buy the club.

And a Foxes statement read: "Following an extraordinary meeting, shareholders debated a number of issues in relation to generating increased investment.

"We have welcomed Mandaric's approach and given him the green light."

It added: "He'll be allowed access to the club's books for a period requested by him.

"The shareholders wish to make it clear that they have, are and will continue to act in the best interests of the football club at all times."

I'm very encouraged and I'm thinking positive - that in a matter of time we will be able to put this together

Serbian businessman Mandaric has already claimed that he is confident of completing the deal by early December.

The 68-year-old told BBC Radio Leicester: "On 15 December, everything should be done.

"Whatever is needed, whatever I commit to, I'm behind it and I always deliver it. That will no different if I do come to Leicester City."

"I'm very encouraged and I'm thinking positive - that in a matter of time we will be able to put this together.

"In the next few days we will be able to come to a conclusion.

"I would personally like to go to Leicester and spend some time there, meet the organisation, see what we have and don't have.

"I expect the financial people should finish the due diligence in three to four weeks."

And Mandaric has pledged money to spend in the January transfer window.

"January is a crucial month," said the Serbian businessman. "I'm sure some spending will be needed."

Mandaric has also said his new offer will cover the investment made by shareholders when Leicester came out of administration more than three years ago.

[davieG]

Written by Ian Bason Saturday, 18 November 2006 The Foxes Trust can confirm that along with other LCFC shareholders at the EGM on the 18th November 2006, it backed the LCFC boards request to proceed to the next stage of the process for Milan Mandaric's takeover of the club.

As the next stage of the process will focus on legal and financial processes, all parties will be able to make little comment in the weeks ahead, as stated by the takeover code, therefore the Foxes Trust will only be able to make very limited information available to its members and the wider fan base.

For details on the likely timescales, we would recommend listening to the Radio Leicester interview of Andrew Taylor which followed the EGM, a link is provided here (requires realtime software to listen)

http://www.bbc.co.uk/leicester/realmedia/sport/2006/11/lcfc_andrew_taylor_18nov2006.ram

[davieG]

QUOTE(FOX in a BOX @ Nov 20 2006, 12:45 PM) http://index.php?act=findpost&pid=454787' target="_blank">

Hi,

OK, lets hope the the deal can be concluded in a reasonable time frame and that all parties move onwards and upwards.

The question im asking is that the FOXESTRUST have an amount of money (as shares) that they cannot bank and I'd like to know (as someone who actually gave my backing and cash) what the are going to do with the money that may come to them.

As true fans of LCFC a good use would be a memorial to players of the past, Rowley, Weller, Sep Smith etc (not being a statue of one person but a collective Epitaph (An epitaph is the inscription or some other tribute to a dead person or persons).

That would act as a lasting reminder and a good use of the cash.

Assuming the deal goes ahead, The Trust Board will come up with a range of options & then put them to the members.

Remember though the payment to the shareholders is phased, so we wouldn't get all the value back next year.

[Louise]

Interview with MM on takeovers:

Streaming: http://www.telegraph.co.uk/ETHtml/content/...MGSFFOAVCBQWIV0

Downloadable: http://podcast.telegraph.co.uk/231106_sport_talk_r.mp3

Presenter*: Now, what's so attractive about taking over a football club? Well, Milan Mandaric knows all about that. Milan, thanks for joining us. Now, you're a brilliant businessman, so why on earth would you buy a football club?

Mandaric: *laughs* Well I've been asked this question more than once from a lot of people but in the business world a football club is no different than any other business, it's either a successful business or the business is stuck, not doing well, there is not much difference. It has the product, which is on the field, it has marketing people, it has all ingredients which a normal and professional business should have. Again, it's a good business or it's a bad business.

Presenter: But your customers throw things at you, which they don't in most other businesses.

Mandaric: I used to run and turn around companies back in America, run the public companies and we had challenges quarter to give shareholders the news, what you have in football you have every weekend to give your shareholders or your supporters news and it's more challenging. I think football is for somebody who really needs the challenge, who needs more aggravation. But it's a great business for me personally I love it because it gives me the thrill of proving that I can do things that maybe some other people cannot.

Presenter: What do you think about what Sep Blatter was saying this week Milan? That these takeovers need to be scrutinised very carefully, because he's not convinced that foreign businessmen like yourself are doing it for the interest of the club, more for their own interest.

Mandaric: Well, you know I think he's got a point. But in certain situations the point should be taken that in you're not dealing with foreigners are far as I'm concerned, you're dealing with the good business people and not good business people. Depends on what you're trying to do. I think if you really look at the records of people that took football [clubs] I don't think they hurt the football clubs overall. In my personal situation, I have more pressure to come here to England than being in America where I owned a club because I need to prove lots more and I need to compete a lot more maybe that the next chairman who was born and raised in his respective city.

Presenter: Is there something about the business culture in this country that makes our football clubs more open to takeover by people from other countries?

Mandaric: I think you're probably right. It's something that... you're absolutely right. I owned a club in France, Nice and I owned a club in Belgium, and I probably could go back and revisit those things but, you're absolutely right, the way clubs in England are run is approachable. As far as that goes you're absolutely right.

Presenter: You're talking to Leicester City at the moment, I know it's in the early stages but that's my old club, what interests you about Leicester?

Mandaric: Well, you probably know that I spent 7 1/2 years in a beautiful place, for me at least beautiful, in Portsmouth and really developed a bond with the supporters, developed a relationship and that's what kept me there. That's what kept me positive and having the right attitude towards football and really towards English football--

Presenter: I thought you'd never leave!

Mandaric: Well, when I look at success, what is more important for me is that relationship, it's not me, it's us. I believe we, who buy the clubs, we really should take the approach of being a maintenance man, maintenance people, these clubs were existing a hundred years before us and I'm quite sure it will be probably a hundred years after us, so during that time while we own the club, while we are chairman, we are maintaining that club. And for me to be good maintenance man I've got to have good people around me to give me support and work with me and without that I don't think there will be success and that's my approach and that's what I had in Portsmouth. And to answer your question I hope I will have that similar thing in Leicester.

Presenter: Milan thank you very much for joining us.

Mandaric: It's nice to talk to you guys.

* It's actually two people asking the questions, Clive Tildsley and Tony Francis

*Thanks (again) for this Louise DB*

[davieG]

Posted by Foxes Trust 30th November

QUOTE(davieG @ Nov 30 2006, 12:23 PM) http://index.php?act=findpost&pid=464466' target="_blank">

Rumour of an emergency board meeting today?

On the Fox Fanzine

Can anyone confirm this?

Foxes Trust

We were represented at a board meeting today, but that is as much as we can say given the legal processes being followed.

[davieG]

From the Mockery

By Bill Anderson

Milan Mandaric will be at Leicester City's clash with Sheffield Wednesday today to run the rule over his £25million takeover.

On the day of the previous home game two weeks ago, against Preston, the City shareholders gave the green light to the tycoon's plans.

It was a decision that was warmly cheered by the fans, the majority of whom have always been supportive of the move.

Now, Mandaric's first visit to the Walkers Stadium since the takeover talks began underlines the progress which the business negotiations are making. And the Serbian-American millionaire is assured of a warm reception, both from the stands and, no doubt, in the directors box.

While the legal niceties are being sorted out, neither side can make any public statements until the actual bid is formalised, which it will be in due course.

However, the signs now are that Mandaric's takeover will be completed in time to allow City boss Robert Kelly funds when the transfer window opens in January, something that was causing concern. And no-one can doubt that the injection of money is needed. Regardless of today's result, City have lost the momentum of October's good run and a string of injuries, plus some poor displays, have combined to bring them back down towards the lower reaches of the Championship table.

[davieG]

From the NOtW

Posted by FleckneyFox

POMPEY SCANDAL

Russian saviour hasn't bought club

Manadric still owns half the shares

His Leicester takeover is at risk

A news of the world probe reveals the man who the FA think had brought the club earlier this year, Russian buisinessman Alexandre Gaydamark, has NOT completed the takeover.

Amazingly Milan Mandaric still owns 50 PER CENT sake in the club. And the bombshell threatens his planned £25 million takeover bid of Leicester. Walkers Stadium directors had no idea Mandaric still had such a huge stake in pompey - and were stunned when we brokle the news to them.Our revelations will send shockwaves through the FA. Manadric declined the comment when we confrunted him but a close friend said: It is true Milan is still owed a significant ammount of money from Alexandre Gaydamark....

The FA are now bound the launch thier probe.

A foxes insider said: This is unbeleiveable.It is very emmbarrassing that the news has been made so public so late"