Formal Bids; Facts & Media Reports (Oxymoron)

[davieG]

Posted by SilverFox

Just want to sum up what I have read in todays Telegraph in contrast to the News of the World:-

Discussions were apparently held with Milan on Friday in London and he is going to make his firm offer tomorrow (I should imagine this will be the much spoken about offer document) at the club's Annual General Meeting.

This is obviously a lot less far fetched than the News of the World's 'reporting' but equally who is to say what is right or wrong at this stage. The article also mentioned that an unnamed club insider has commented that the process is close to completion.

Personally I choose to believe Newts, but I just thought I would put this out there. See, it isn't all doom and gloom

What is interesting is that the Telegraph seem to think that there is an AGM tomorrow.

I feel also a little more inclined to believe this than the News of the World for one simple reason...

They mention in their article a 'club insider' who commented that the deal is close to completion. This club insider is unnamed but you only have to look at the previous page to see who it most likely is. I'll give you a clue...he writes for the telegraph every week, is an LCFC board member and scored a lot of goals for us in his day...

none other than Gary Lineker.

Posted by FoxesTrust

There is an AGM tomorrow, but that has been scheduled for weeks & does not relate to any movement in the takeover situation.

It is a routine AGM, re-appoint auditors, re-elect board members etc.

However there is no doubt that shareholders will be asking for the latest information. When the EGM made the decision to progress with the MM interest, we hoped a copy of a formal offer document would be handed out at the AGM, but that would need to arrive tomorrow and our latest information is that this is unlikely

[Collymore]

From FansFC.

Mandaric plays down Leicester City worries

Milan Mandaric has called press speculation that he may not be able to complete his Foxes takeover a 'joke'

Sunday newspaper reports claimed that the Serbian businessman could fall foul of FA rules if new Portsmouth owner Alexander Gaydamak did not complete his buyout of Mandaric's Fratton Park shares.

"It is a joke as far as I am concerned," he blasted.

"I know the regulations of the FA, and I would not have opened talks with Leicester if what was being said in the story was true.

"The man I made the deal with (Gaydamak) has lived up to all his commitments, and there is no problem at all. I have no shares in Portsmouth at all now and I will not in the future.

"I am surprised that this story appeared at all, but we have bigger fish to fry now and I am hoping the deal with Leicester will be completely finalised as soon as possible."

[davieG]

Foxes Trust

No, still no legal bid arrived.

Hence at the clubs AGM tonight, the LCFC board couldn't explain their current discussions with MM, due to takeover panel rules.

We all await the document

Once again we will post - we don't oppose the bid, but we can't back it either until we know exactly what the bid is via a legal document.

It is still being negotiated & we expect the content of the bid not to be the same as originally proposed in an outline document which was sent to shareholders prior to the EGM, when we all backed taking the interest to the next stage.

[davieG]

From the FoxFanzine Site

Foxes_Trust Posted on 11/12 13:13http://leicestercity.rivals.net/default.asp?sid=889&p=55&ContentURL=http%3A%2F%2Fboards%2Erivals%2Enet%2Fdefault%2Easp%3Fsid%3D889%26p%3D16%26style%3D2%26forumId%3D3142%26action%3D1%26replytoid%3D530563941&contenttype=message&contentid=3142,530563941' target="_blank">

re: Word on the street A quick post to say we aren't holding any deal up.

As of Friday, the formal offer still hadn't been received, however the club's board are working with MM to try and agree a deal which they feel enough shareholders would back for the takeover to proceed

We can't go into more details about the various elements which affect whether shareholders back the bid or not, elements which would make som

[davieG]

Babylon posted on the 15th

FT do you have any more news for us? Has a written bid been received yet?

SilverFox posted on the 15th

Posted by the Foxes Trust on talkingballs.co.uk:-

--------------------------------------------------------------------------------

We have no new news from the club today and can't say a great deal due to the legal processes in place.

It's not about hiding as MadFox has posted, it's about following the legal rules laid out by the takeover panel

Our understanding is the talks are still ongoing with the aim of a formal bid document then being put in front of shareholders which is likely to gain approval

Given that still hasn't happened, we can't see the deal going ahead in 2006.

--------------------------------------------------------------------------------

My original question

So in a nutshell trust all this talk about dead deals and 3 rebel shareholders is all fairytale...

you can say that can't you?

FT reply...

With any takeover there will be various "issues" that need to be resolved, as each party looks for the best deal for them. The LCFC board have a duty to both act in the long term interests of the club & the interests of the shareholders who appointed them (those 2 interests can both compliment & conflict)

Only the shareholders on the actual board would be aware of the current deal on offer, the rest are waiting for the official document, so wouldn't be in a position to oppose or back anything. The shareholders will have received no update since Nov 18th.

As we have the Observer at board meetings, Trust representatives are up to speed with developments, but can't reveal anything & would be unwise to do so, as things change as the days progress (slowly).

We have heard various stories/theories about which shareholders may oppose the deal and the differing reasons why, but no shareholder has directly told us that they oppose it.

Don't forget 2/3 shareholders could not stop the deal if the rest were in favour.

Originally Posted by Dour

Is MM still sounding out options with the board (and via them, shareholders)?

FT Response

Yes with the board (& therefore the shareholders within the board), but not other shareholders, that has to wait for a formal offer as per the takeover panel rules

Quote:

Originally Posted by Dour

Are some still shareholders seeking clarification of what the bid might be?

FT Response

Yes, awaiting the official bid

Quote:

Originally Posted by Dour

Why are you in favour of the MM bid?

FT Response

We can't state we are in favour at this stage, we need the formal document to examine the detail, we have previously explained in our website articles some of the issues we required answers too.

At the end of the day each shareholder has to view what is being offered & then compare that with what the club will have to do if the deal doesn't go ahead

Posted By Foxes Trust

Arrived on this message board now, thanks Silver for posting the responses from TB across.

[davieG]

Posted by Foxes Trust

and here is why... from today's Sunday Times

""Ex-owner Milan Mandaric's departure from the club to pursue other ventures (an attempted takeover of Leicester City) involved the transfer of his remaining half share in the club to an offshore trust. Gaydamak is still to pay £8m of the outstanding debt."

It's part of this report http://www.timesonline.co.uk/article/0,,2093-2508430.html

Copy Here:

Rich pickings, but Pompey have last laugh

Duncan Castles

Arsène Wenger had a playful dig at Portsmouth’s low-budget squad, but they nearly made him pay

YOU know you’re doing well when Arsène Wenger subjects you to a back-handed compliment. Relegation fodder for all but the crucial part of last season, Portsmouth walked into North London on near level terms with Arsenal in the Premiership — and straight into a Wenger wind-up.

NI_MPU('middle');

Welcome back Kanu, the division’s unexpected leading marksman and didn’t the Nigerian’s former boss want him to know it. “I’m a big admirer of his skills,” wrote Wenger in the programme. “But to be honest, the number of goals he has got so far this season has surprised me a bit. Also when I see that he is scoring volleys with the left foot, I know he must be in the form of his life.” You could almost see the Frenchman’s sardonic grin. There was little better for Sol Campbell, jettisoned by Wenger six months ago in a welter of speculation over his mental health.

“I just think he had gone through a difficult patch in his life which can happen to anyone,” added Arsenal’s manager. “I’m sure he was mentally strong enough to deal with it, and it looks to me now as though he is focusing on his game again.”

In some ways Pompey’s elevated position has been as unexpected as the revival of their senior pair.

Pre-season brought an almighty clear out of the dead wood at Fratton Park. Nineteen footballers were allowed to leave, the majority released, freed or paid off. Just three raised a transfer fee. Six more senior pros were loaned out to other clubs. Fans waited for a similarly emphatic round of spending — here after all was Harry Redknapp let loose on the transfer market with a multi-millionaire’s credit card. Yet it never came.

Six players joined on permanent contracts in the summer. Campbell, Kanu and Wigan’s David Thompson came on free transfers, while Andy Cole and David James were extracted from Manchester City for less than £1m. Only the purchase of Croat playmaker Niko Kranjcar involved a significant fee, of £3.5m.

Redknapp’s other acquisitions — Manuel Fernandes, Rodolph Douala, Glen Johnson and Ognjen Koroman — had to be borrowed, the manager becoming increasingly dubious about the real resources of Alexandre Gaydamak.

Every time he lined up a high-quality recruit the chairman failed to deliver the necessary finances. Wages were not a problem — they could be paid from the club’s Premiership income streams — but new capital seemed to be.

There have been other signs that Pompey’s new riches are not as magnificent as they seemed when Gaydamak bought into the club last winter. Ex-owner Milan Mandaric’s departure from the club to pursue other ventures (an attempted takeover of Leicester City) involved the transfer of his remaining half share in the club to an offshore trust. Gaydamak is still to pay £8m of the outstanding debt.

Yesterday morning brought a report the Russian had prevented Fernandes lining up against Arsenal. Reason? Because the terms of his switch from Benfica committed Portsmouth to converting the loan to a transfer if he started three consecutive matches. At Arsenal, the Portugal midfielder sat on the sidelines rather than running the lines. “He felt rough yesterday but I wouldn’t have played him anyway,” said Redknapp. “The club did a deal that if he started three games in a row we would buy him. The problem for me is I think the fee is £12million and I don’t want to pay that.”

Yet while Redknapp’s squad is small in numbers it is strong in talent. The game-wasting errors that have pockmarked James’ career all but gone. Glen Johnson appears to have learned that potential must be applied. His performances have been such that Jose Mourinho now talks of restoring his misfit to Chelsea next year.

Across the midfield, Gary O’Neil, Matthew Taylor and Sean Davis are all resolutely effective in the Premiership. Two of the three have pace in abundance and an eye for the spectacular. Knitting them together is one of the division’s most underrated footballers. The goal-scoring catalyst and brains behind Pompey’s escape from relegation is Pedro Mendes.

Redknapp’s forwards all threaten in their own way. Lomana LuaLua will regularly beat any opponent one-on-one, while Benjani Mwaruwari has an instinct for finding chances that would be fatal if matched with Cole’s ability to convert them. Kanu remains capable of scoring goals only the privileged few can emulate. All four were injured — Kanu gamely playing through a knee injury. It almost mattered nought. As the game began to stultify Pompey scored twice — just before and after half-time.

Then the ‘new Kanu’, Emmanuel Adebayor, entered and saved the game by netting one and creating Gilberto’s equaliser. Still nudging shoulders with the elite, Pompey left the happier. “We are staying up,” sang their support. They have a sense of humour to rival Wenger’s.

[davieG]

The Times December 18, 2006

Mandaric takeover plans in jeopardy

Rick Broadbent

Milan Mandaric's proposed £25 million takeover of Leicester City is on the verge of collapse, two weeks before the transfer window opens. The former Portsmouth owner is said to be unhappy after seeing the results of his accountants’ examination of the club’s finances.

Shareholders voted unanimously to let Mandaric examine Leicester’s books at an extraordinary meeting last month and a formal bid had been expected on Friday, but the deal is now in danger unless the parties can agree a revised price.

Should Mandaric walk away, it seems likely that Leicester will consider a rights issue as a way to raise funds, but that would be a crushing blow after fans had welcomed Mandaric as a white knight. Among those backing him were two former players, Gary Lineker, who owns 100,000 shares, and Emile Heskey, who has 50,000. Hammond Grange — a property management company — and Pukka Pies own the largest stakes.

Leicester’s accounts value the shares at £6.3 million. That means that if Mandaric had tabled a £25 million bid and chose to pay off the £15.9 million loan on the Walkers Stadium, there would have been £2.8 million available to Rob Kelly, the manager, for team-building. However, a source close to the club told The Times that a takeover was looking precarious last night after the period of due diligence.

Shareholders had been expecting to see details of the bid this week, giving them 21 days to decide whether to accept it. News that the takeover is in jeopardy will alert Sir Jack Hayward, the Wolverhampton Wanderers owner, who had been courting Mandaric and has since halved his asking price to £20 million.

Last month Mandaric sounded enthusiastic as he looked ahead to the prospect of returning to football. “It should be a matter of time before we can put this together,” he said. Andrew Taylor, the Leicester chairman, was equally upbeat. “He has got a credible track record and has a lot of football nous,” he said. “He talks about quality of money, not quantity.”

Some were less convinced. The Foxes Trust, one of the shareholders, claimed in November that £25 million was an inflated figure as Mandaric was unlikely to buy the stadium outright.

Linkage

[Daggers]

Mandaric says Foxes bid still on

Mandaric is a former owner of Portsmouth

Milan Mandaric has denied his proposed £25m takeover of Leicester City is on the verge of collapse.

Reports claimed the former Portsmouth chairman was set to pull out or seek a price reduction after an examination of the club's books revealed extra debt.

A statement from Mandaric's camp said: "The due diligence has raised certain legal and financial issues which merit further investigation.

"The club and Mr Mandaric are working together to address these points."

An extraordinary meeting of Leicester's shareholders in November gave Mandaric permission to examine the Foxes books, and a formal takeover bid was expected to be made before Christmas.

At that time Mandaric appeared enthusiastic at the prospect of returning to football after his departure from Portsmouth in September.

The 68-year-old Serbian-American businessman said: "It should be a matter of time before we can put this together."

The Foxes Trust, who are shareholders in the club, claimed £25m was an inflated figure for the takeover as Mandaric was unlikely to pay off the £15.9m loan taken out by the club to fund the building of the Walkers Stadium.

The statement from Mandaric said: "Discussions between Mr Mandaric and Leicester City in connection with his interest in the club are continuing."

BBC Source

[Daggers]

Mandaric deal is still alive - City

Leicester City have confirmed that the Milan Mandaric takeover deal is still on-going and that talks are under way.

But there is now a danger that the conclusion of the deal might not beat the January 1 deadline, the date the transfer window opens.

The club do not dispute yesterday's statement from Mandaric's advisors that extra debts surfaced during the due diligence procedure.

But the deal is still on the stocks and a City spokesman said: "Negotiations are continuing on the matter in an effort to resolve the issues."

In the light of what has been uncovered, Mandaric's final bid - which is still technically to be delivered - could be amended from the offer which was accepted in principle by the shareholders' meeting on the morning of the Preston game more than four weeks ago.

That might mean more meetings before City made a decision, thus stretching the process even further.

Time is now of the essence. Had everything gone smoothly, Mandaric would have been installed as the club's owner by now, but there have been so many obstacles arising that his frustration has built up along the way.

Fortunately for City, Mandaric has not allowed that frustration to prompt him to walk away, and the club must hope that any problems which have now surfaced can be dealt with to keep the takeover alive.

Every week is vital and already precious time has been lost, so if City boss Robert Kelly did have a notional shopping list in mind, he now runs the risk of seeing his targets go elsewhere before he can make a move.

The recent improvement in results will not have deflected Kelly from his hope that he will be able to strengthen his squad although, until the ink is dry on the takeover, he will take nothing for granted.

Instead, he will be concentrating on matters on the field, with a tough test against promotion challenging Cardiff on Saturday. Another big crowd at the Walkers Stadium is hoped for as the festive programme gets under way.

But the rumblings from the legal eagles will be in the back of everyone's mind until everything is sorted out.

link

[davieG]

From the BBC & Louise

Thanks.

For those who can't watch it, the report says:

"First the latest on the Leicester City takeover. We understand tonight a series of deal breaking meetings have been held throughout today between businessman Milan Mandaric and representatives from the club. The takeover is now thought to be on a knife edge because Mr Mandaric's advisors say hidden debts have surfaced. Discussions are ongoing as we speak, we'll have more on this story tomorrow."

[Daggers]

LOUISE she say:

Mandaric lowers Leicester valuation

Milan Mandaric has made a revised bid to take over Leicester City, the Coca-Cola Championship club, but it is a substantially lower offer than that made by the former Portsmouth owner earlier this month.

As The Times revealed ten days ago, Mandaric’s proposed £25 million buyout was on the brink of collapsing when the businessman became unhappy after seeing the results of his accountants’ examination of the club’s finances.

Financial and legal issues were raised during due diligence and, shortly before Christmas, Mandaric walked out of a meeting with Leicester officials. However, he has now returned with a reduced offer, which the Leicester board is considering.

Mandaric had received the backing of two former Leicester players  Gary Lineker, who owns 100,000 shares, and Emile Heskey, who has 50,000. Hammond Grange, a property management company, and Pukka Pies are the largest stakeholders. Leicester’s accounts value the shares at £6.3 million.

http://www.timesonline.co.uk/article/0,,27-2520897,00.html

[Daggers]

MBKING he say:

Crunch time

Milan Mandaric has submitted his revised terms to take over Leicester City just four days before the January transfer window opens.

The club's shareholders now have to decide whether to accept in principle the latest figures in a prolonged saga that appears to be going right down to the wire.

Mandaric's offer still amounts to �25million but the terms have been revised.

If Mandaric, below, is to be in a position to hand manager Robert Kelly funds in time for the opening of the transfer window on Monday, a decision will have to be made quickly.

After going through the books during a process of due diligence, Mandaric's advisors found a higher level of financial burden than they had been led to expect.

City insisted at the time that the deal was still on-going.

Mandaric has lost none of his enthusiasm for the takeover but wants it to happen as soon as possible so he can set about reviving City's fortunes.

Time, however, is of the essence and it is now down to the shareholders who, famously, gave Mandaric's first offer the green light six weeks ago.

The new terms are not the official bid, only the 'heads of agreement'. If the shareholders reject, or ask for more time to consider, then the process will be delayed even further.

Mandaric is totally committed to the deal, and City claim to be as well. Yet the way things are being dragged out does neither of them any good.

If Mandaric does become the new owner in time, then City can work in the transfer market.

If there is a delay, then the chance will be missed.

Thankfully, the picture is a bit clearer on the playing side where City have recovered from a bad run during which they took just one point from 18, and look poised to end a traumatic year in reasonably promising shape.

Kelly, as always, needs to concentrate on "the real world", as he calls it, and cannot afford to imagine what may, or may not, transpire in the next few days.

He said: "All we are thinking about is going to face Southampton on Saturday. That is all we can do.

"We have won our last two away games and will go there with no fears, but we do know they have a good home record and that it will be difficult.

"With so many games coming at us at this time, we are in reasonably good shape, with no major injury worries among the regular players. But that can soon change so we need as many of them as possible fit and ready."

The Mercury

[Daggers]

MILAN MANDARIC has made a final £25million bid to gain control of Leicester City.

The former Portsmouth owner remains committed to the planned buy-out he started in November.

But he has reduced the price he is willing to pay to gain a 90 per cent shareholding at the Walkers Stadium after his advisors discovered the club’s debts were much worse than first thought.

Mandaric wants his new terms to be accepted within 14 days so he is in control before the transfer window closes.

Foxes boss Rob Kelly said: "This is not just about me and wanting to spend money on new players. It would be good for everyone at the club to see the thing sorted out once and for all.

"In the meantime, all we can do is concentrate on the real world and prepare to face Southampton on Saturday."

http://www.thesun.co.uk/article/0,,2002390000-10151,00.html

[davieG]

Posted by Foxes Trust

No formal legal offer document no, further indicative bid version???.we have lost count, yes. So nothing put to shareholders as yet.

The Trust Observer attended an LCFC board meeting this week, wouldn't expect any further news until next week earliest.

Our best estimate is that it will be sorted one way or the other during January, not sure how early but everybody is aware of the transfer window (although loans are still an option after then).

[davieG]

posted by Louise from the mockery

QUOTEDeadline is missed!

Milan Mandaric's takeover of Leicester City will not be completed before Monday - the opening of the transfer window.

But I understand that his £25million buy-out may be in place before the end of next month if the current talks on his latest terms come to fruition in time.

This would give manager Robert Kelly time to strengthen his squad - although how much time, and how much quality, would still be available in the transfer market is uncertain.

More realistically, though, the chances are that any big-money investment will occur in the summer, and that loan deals from now until the end of the season are more likely.

The club claim that Mandaric's buy-out plan is still on course - but Kelly has to concentrate on the playing side and admitted that the disappointing lack of cash is a far-from-new experience for him.

He landed free agent Danny Cadamarteri this week, but it was a deal partly funded by the loan wages of winger Andy Welsh who returned to Sunderland.

Kelly said: "I am pleased I can get a player of Cadamarteri's pedigree and calibre because there is no money.

"No disrespect but that's the reason we have got him and Danny knows that. We couldn't go out and make even loan signings and I can't wait to find out what might happen with the takeover.

"I've got to deal with where we are now which is exactly the same situation as we always have been, no money available. I am grateful to the board for the little bit of money to sign Danny - but that is where we are and I can't do any more."

On the plus side, however, the threat of Kelly losing his best players during the transfer window would seem to have receded because, with the Mandaric deal in the offing, City would hardly want to lose key men before the new owner has taken his place.

In between all this, after today's trip to Southampton, football is set to break out again on Monday when Sunderland arrive the Walkers Stadium - and Kelly feels this will stretch his resources again.

He said: "At Christmas, it was bad enough playing Saturday and Tuesday, now it is Saturday and Monday which makes it harder - but we will just have to get on with it."

http://www.thebluearmy.co.uk/details.asp?k...122006349325531

[davieG]

From the Merc

It's a deal! By Bill Anderson, chief soccer writer.

Milan Mandaric's takeover of Leicester City is close to completion and he could be in charge in about two weeks.

The Leicester Mercury understands the club's board has agreed to accept his revised terms - another green light for the Serbian millionaire, who amended his earlier offer in the light of added financial burdens which emerged in the due diligence process.

The original extraordinary general meeting of shareholders in mid-November approved the proposals, but the slow legal process left many fearing Mandaric might find his patience tested to breaking point.

At one stage it was felt his amended bid might not find favour with City, but while the terms are what a source close to the club called "significantly different" from the first time, the deal is very much on. The overall amount of the takeover is still about £25 million.

It is understood that it is the schedule of payments to shareholders which has been changed.

The board is confident that, by backing this latest Mandaric move, it can convince the rest of the shareholders, the majority of whom are in favour of Mandaric taking over, that this remains the best deal for the club.

The long, drawn-out process which has been frustrating for both parties, is now set to gather pace as it enters the finishing stretch. The Mercury understands there will be no need to call another extraordinary general meeting to rubber-stamp the takeover, which means delays should now be kept to a minimum.

City are confident that Mandaric will take over before the transfer window, which opened yesterday, closes at the end of this month, enabling City manager Robert Kelly to strengthen a squad which, after a good run, has lost its way again with two successive defeats.

There is every chance that Mandaric, who is out of the country until next Sunday and so will miss Saturday's FA Cup third round home tie with Fulham, will be in a controlling position by the next game, the trip to Colchester the following week.

That will come as a relief to those at City who were fearing for the future of the club, both financially and on the playing side.

[Daggers]

Mandaric deal on the move

The Serbian businessman Milan Mandaric could be in charge of Leicester City by the end of the month. Listen to our interviews, and watch Mandaric's first television interview here...

01 January 2007

BBC Leicester understands that Leicester City have been made a final offer by Milan Mandaric for a takeover of the club.

BBC Leicester's sport reporter, John Sinclair brings you the details...

audio Listen: John Sinclair on Milan Mandaric

It's also understood a deadline has been set by the former Portsmouth owner for the offer to be accepted or rejected.

An EGM of City's shareholders will need to approve the offer and since two weeks notice has to be given, it's understood that a deal, although still likely, will possibly not be concluded before the end of the January transfer window.

Link

[davieG]

Posted By the Foxes Trust.

taken from the Fox message board (re-posted here for info)

Poster - Soho

Some questions you should now be able to answer:

1. Is it true one of the non-exec Directors, James Johnson a solicitor from Messrs Clifford Chance (one of the biggest law firms in the world - if not the biggest) has resigned in protest at the final offer from MM?

2. Has the Board recommended or will the Board recommend to the shareholders that MM final bid is accepted?

3. Is there still a need for an EGM of the shareholders before acceptance? If not why not given that everyone said that there was a legal requirement for such a meeting on 14 days notice?

4. Do we now have a formal bid in from MM?

5. If there is not to be an EGM are the shareholders individually replying to an offer by agreeing to sell their shares in writing rather than in a meeting?

6. Do the Trust expect that at least 90% of the shareholders will accept MM's final offer?

7. When will Kelly be booted out and who is MM lining up for the job?

8. Will this deal be done by 13 Jan as E Midlands Today says - or by 31 Jan as Radio Leicester says?

9. Will the Trust be accepting the offer in respect of their shares?

10. Is it true that MM has offered to set up an "advisory board" with the Trust being appointed to that board? Who else will be on that "advisory board"?

11. Is it true that if the MM deal does not go through LCFC will be forced into administration again before the end of the season with the prospect of a minimum of a 10 point deduction?

foxes trust answer

1. Yes, but the reasoning may relate more to not being comfortable with Q2, as in recommending

2. We believe they will, but nothing has been received as of tonight

3. There will need to be an EGM, however if it is established in writing (must be in writing) that enough backing is achieved, the EGM becomes a formality and things can move on the player front prior to the EGM

4. We haven't seen it as yet, but believe it has been received

5. See 3 above

6. We don't know, it depends what the final offer includes, the difference between personal guarantees of future payments and bank guarantees is huge in some shareholders eyes, this may be the key issue (but LCFC reps have repeatedly told MM this)

7. Can't answer that one due to conflicting information from reliable sources, MM said directly to us after the Sheff Weds game that he thought RK was doing a good job with the resources he had available and he wanted to help him (there again the West Ham new owner said......)

8. Don't know at this stage, too early to call really all determined by the shareholders reaction + the Russian guy paying up to MM has to be another factor.

9. We may not have to sell, cannot expand on this point, but it doesn't mean we are trying to block the bid

10. Yes, an MM representative has said we will be on it, do not know the make up of it though

11. No, but we wouldn't rule out either player sales or another option appearing out of necessity

[Daggers]

FROM THE FOXES TRUST

Hi Trust Members

If has been sometime since our last e-mail update on the takeover situation, this was due to the confidentiality clauses that were inserted in the Manderic indicative offer document which limits the circulation of information.

However as we now seem to be progressing to the final offer stage, we thought we should give you our assessment of the current situation.

For ease of reference and the potential of responding to additional questions from members, below we have allocated a letter to each paragraph.

a) The club have officially announced via a press release yesterday that James Johnson, one of the LCFC Non-Exec Directors, resigned last Friday at an LCFC board meeting, as our Observer was present during the meeting we are aware of some details but cannot expand too much. It would be best summarised that James Johnson felt uncomfortable with recommending to shareholders that they should accept the Manderic bid and therefore felt it was best to step down.

b) We believe the board are moving towards the day when they will accept that they have the best deal they can obtain from Manderic and put it forward to shareholders, probably with the recommendation that the bid should be accepted.

c) We believed the formal bid document would be circulated to shareholders this week, however following a further conversation with the club today, we now understand it is more likely to be circulated w/c 15th Jan. Most delays in the takeover process have been blamed on the LCFC Board in the media, in reality both parties have played their part, as is the case with this latest delay.

d) The shareholders at the EGM in November agreed unanimously to proceed with discussions, however many indicated at the meeting they needed much more information before they would commit to selling their shares, we still don't know if the final bid document will provide enough details to satisify the vast majority of shareholders. We detailed a list of questions directly to Mandaric's representatives, some of which were answered, prior to the EGM in November. Those left unanswered we cannot progress directly due to the takeover procedures which states all contact must be between the negotiating teams of the club and Mandaric.

e) The indicative offer from Mandaric has changed a number of times since the initial offer which was circulated prior to the shareholders EGM on Nov 18th. We can't provide details, other than to say that many of the amendments relate to the timing of payments.

f) In many takeover situations where phased payments are involved it is fairly common practice to utilise bank guarantees, so all parties feel comfortable that a delayed payment offers little risk. A key factor in whether the vast majority of LCFC shareholders will accept the takeover offer will be how many of them would be willing to accept phased payments without bank guarantees being offered by Mandaric, if that is what he proposes in his final offer.

g) The frequent use of a £25m by the Leicester Mercury has been mis-leading. This figure appears to include taking over the debt of the stadium, circa £17m according to their latest article. Please ignore the £25m figure, because as an example another media outlet did the simple calculation of £25m-£17m and then stated that Dowie (see point k below) would have £8m to spend in the transfer window, which is equally incorrect. The Trust Board finds it strange that 4 years ago as part of a consortium it was widely reported in the Mercury that the consortium took over the club for around £6m (no mention of the Teachers stadium loan), yet 4 years on the stadium loan is now within the Mandaric figures.

h) There has been some confusion about the need for the club to hold an EGM to approve an offer, given that requires 14 days notice prior to the meeting, with the further delay resulting. Our understanding is that although an EGM must be held, if the required % of shareholders are willing to commit in writing to sell their shares to Manderic, that this would be enable the club to indicate to Mandaric the takeover will be approved and then funds would be released for squad purposes prior to an EGM being held.

i) Without being able to go into details at this stage, working with the club we have sought to find a way for the Trust to retain it's shareholding in the club without having any impact on the takeover deal. This looks likely to happen, but we will explain how this situation arose at a later date. If this proves to be the situation, the Trust board will not call a members meeting, however should we be eventually approached to sell our shares, then subject to time constraints, the Trust Board plans to call a members meeting, so please check you e-mails regularly, as an e-mail notification would be the quickest method to call a short notice meeting.

j) Although as explained earlier we currently cannot have direct dialogue with the Mandaric team, prior to November 18th, his representative did confirm to the Trust, that the Trust would be offered a position on the Advisory Board which would be set up, assuming the takeover is approved. The club have since confirmed they also believe we would hold a position on this board. We don't at this stage know the full make up of this board.

k) The position of Rob Kelly has been subject to many rumours, the most consistent being Iain Dowie being linked with the managers position. The Trust has received conflicting information from various reliable sources and therefore is not in a position to clarify on this issue

l) If the Mandaric deal falls through, then the LCFC board will need to put in place a plan B very quickly to generate additionally funding. Currently the Board cannot approach other parties due to an exclusivity clause in the Mandaric indicative bid document, however other options were being looked at prior to the receipt of the Mandaric indicative bid, so we would anticipate a further flurry of activity should this be the situation.

m) Finally, the Trust Board cannot predict whether the final offer from Mandaric will receive enough backing from shareholders or not. We are certainly aware of shareholders who are totally in favour and a few who expressed serious reservations at the EGM, however the vast majority at the EGM wanted much more information and that makes it very difficult to predict.

Hopefully this gives you a feel about the current activity and we will provide further information as soon as we can. Our plan is to produce a members newsletter soon after the takeover situation is resolved featuring a diary of events as the takeover unfolded. We will include as much detail as we are legally able to do.

Regards

The Foxes Trust Board

[davieG]

Posted By Soho Fox

More questions I'm afraid:

1. Did you meet MM on saturday afternoon whilst on your vol au vent hunt? He was in the VIP areas from 1.30 to 6.00 ish.

2. If so did you take the opportunity to mention to him what you told Radio Leicester earlier in the day that as a shareholder you hadn't yet received any formal offer from him to consider?

3. Did you tell him that you didn't expect to receive a formal offer document to consider until 15th January?

4. If so why is MM telling The Mercury, The Times, The Guardian and The Independent - at least one of whom appears to have interviewed him on Platform 3 at London Road Station as he was waiting to get the 6.34 back to London - that he thinks the deal will all be done either by Colchester away or the Fulham replay?

5. How come you have been very laid back about the transfer deadline saying there won't be much done for us except maybe the odd loan deal - when MM says he is very keen to get experienced bodies in before the deadline to help the young 'uns?

6. How come you said on RL on Saturday morning that you couldn't begin to predict how the shareholders would vote once they received the formal bid document - when all and sundry are virtually saying it's a done deal and all over bar the shouting?

7. Could it be that the bigger shareholders have all been tapped up already and given this deal the thumbs up so at least 90% are in the bag and the jolly old Trust has been left out of these discussions for some reason?

8. If this deal does look finally like it's going ahead sooner rather than later, is there any chance the Trust could show a tad more enthusiasm and not behave like MM has just piddled on your chips?

Soho - here goes then

1)The Trust board member on Directors Box duty did speak to MM briefly, no new information gained.

2)Little point as he would know that anyway.

3)Again little point, as the plan is for MM to submit it to the club on Friday and as the documents have to be posted the earliest receipt is most likely Monday

4)Only MM can explain that one, to make it clear he has asked for some additional information and then will submit his offer having received it. Each time there is a delay MM uses the media to infer the LCFC board has delayed the deal, both parties have consistently played their part in the delays throughout.

The only "riders" to points 2-4 would be if the plans changed today.

5) Experienced bodies can be obtained on loan, it is interesting when you only extract the MM actual quotes from the article and not pay any attention to "Splash the Cash" headline, which he doesn't say at all, the sensational headlines from Anderson go from bad to worse

6)Because all shareholders need to see the full contents of the offer, the vast majority at the EGM were in the "let's explore and get some details" camp, as they still haven't had those details it really does make it harder to predict than you would think. If certain things are included we think it would go through, but we are far from certain if they will be or not.

7)It is an obvious approach to go for the larger shareholders first, but we come under that catagory being in the Top 15 out of 48, however we know the details of each bid anyway as the board reviews each revised proposal first and our Observer is part of those discussions.

8)If Anderson stopped being the PR agent for MM and over hyping what MM will deliver, we would spend far less time having to play down the bid and trying to get expectations to a reasonable level. There is no-one else addressing this currently, so we feel we have to play this role and hence why many think we are not keen on the bid.

If once the bid is received and we have time to review the contents, the Trust feels it is the best way forwards, then we will say so, with the aim of holding a members meeting first to gather viewpoints.

--- Post edited by Foxes_Trust on 8/1 23:42 ---

[davieG]

Full draft of the Mercury/FT interview

The Mandaric Following yesterday's Mercury report, we print the full answers that Foxes Trust chairman Ian Bason gave to telling questions from football writer Andy Mann

Q At this stage in proceedings, what is the Trust's position on a) Mandaric and b) his takeover?

A a) Very approachable face to face, a good reputation talking to fans at Pompey. Obviously has a proven track record in running football clubs (hence he's more desirable than an unknown foreigner with no UK football experience to offer). Track record shows questionable judgement on managers (although we gather he acknowledges previous misjudgements).

b) Not happy with his chosen route of selling his bid to fans via the Mercury rather than focusing more on the shareholders who actually make the final decision, and this will cost him votes (we aren't talking about the Trust's votes) when the final bid is put before them.

The Trust is also disappointed the initial 'indicative' bid lacked sufficient detail, and worry that the final bid document will leave too many questions still unanswered

Q Is the deal dragging on considering he was given 'the green light' at the EGM two months ago? Is this a cause for concern? What are the stages that remain, and how long before they are completed?

A If you look at many other takeover situations the time-scales aren't untypical. We actually think some time was lost prior to the EGM with a failure of both sides to involve the legal experts early enough, which would have highlighted the legal hoops to be negotiated and, therefore, the processes could have been under way earlier.

Time lost being a concern in terms of whether the takeover proceeds or not? No.

Can't be precise on time-scales. We expect the formal document early next week. What happens next depends largely on whether sufficient backing is obtained.

Q Many, if not most, fans want the deal done by the transfer deadline, for obvious reasons. In your opinion, is it a) important to complete by then and b) achievable?

A More important for the ability to complete loan deals for that deadline rather than permanent transfers. MM has utilised loans consistently at Pompey and we think it would be better to loan and assess this season - then go for surgery in the summer, when the deals on offer may be better.

If MM has just taken over and we have more 'Splash the Cash' headlines, that will put the prices up for players to bring in. Does Bill Anderson never think headlines like that could be wasting some of MM's cash with inflated prices from other clubs and greedy agents?

Achievable? Maybe, again depends on the reaction to the final offer.

Q You say in your email to Trust members about not being sure whether the shareholders will go for it. Why do you come to that conclusion, particularly as we understand the board is set to recommend terms to shareholders, and Mandaric is increasingly around the club and training ground?

A We believe the board will recommend it too. However with JJ (director James Johnson) having resigned, the remaining board members personally control only 33 per cent of the shareholding. We are aware of some shareholders who will certainly support it. However, we believe there are several different reasons why some shareholders won't, and know this to be the case from various conversations we have held.

At this point, I would point out that we have stated a neutral position to any shareholders we have talked to, saying we still awaited answers to a number of questions before we could declare our support or otherwise. We would like these points addressed in the final bid document.

We did put the vast majority of questions we had to a representative of MM directly, and had some initial answers. However, the direct dialogue had to cease after the EGM to follow takeover panel rules.

Q You also talk about retaining the Trust's shares. How many do you have and how will this be possible? What will be the benefit of retaining them?

A £151,000 of shares. The Trust movement across the country is loath to let go of shares in their individual clubs once obtained. Ideally, we would like to retain them all, some or even a token single share. As MM speaks of his affinity to fans, we feel he should allow a democratic City fans organisation to retain a shareholding as a symbol of his relationship with the fans.

We view this as an emotional, not financial, issue. The club could be handed over to a non-City fan for the first time. A symbolic retention of a shareholding with the Trust for the long term leaves a thread of City fan ownership, even if it is a minimal percentage.

Q If the Trust are forced to sell their City shares, what will you do with the money? What will become of the Trust in this event? Have you put membership renewals on hold since Mandaric launched his takeover move?

A We will still exist and have a role.

The Trust board will generate a list of alternative uses for the money and put these suggestions to the membership for a democratic vote. We already have many ideas, but will formalise them.

The decision is not a priority presently, particularly as we don't expect any immediate payment to shareholders.

One of the options was to reduce membership fees to encourage more fans to join, so we did put memberships on hold for a period.

However, we are currently starting to send them out again now, given the delayed timing of payment we now anticipate.

Q You have regularly stated the £25million figure used by the Mercury's Bill Anderson is misleading. Can you say why you feel this is inaccurate, given Mandaric's people have told Anderson that figure? Can you provide other figures instead?

A We don't think it benefits any party to quantify the bid, particularly as it changes. The risk of inflated transfer fees/wage demands is a real concern

Even now we still have fans coming up to us believing £25million cash will be arriving next month, because they have read this figure so frequently. The main question we feel the Mercury has failed to question MM on is how that is made up. If his people supplied the figure then we feel to continue to use it you should have asked:

a) Does it include anything relating to the stadium

b) If so, are we just talking about retaining the Teachers deal?

If that is the case, when the Consortium took over the club all the Mercury coverage talked of a £5-6m takeover bid and ignored the stadium finance, so it is inconsistent reporting to do so now, as you could then argue the Consortium bid was close to £25m too.

Q You also talk about an advisory board. What will it be, who will it advise and on what, and what will your role be?

A Also answers the 'What will become of the Trust in this event?' question. The existence of the advisory board was mentioned in the initial indicative offer.

We spoke to MM's representative, discussed our present level of involvement, and we were subsequently told we would have a position on the advisory board if the takeover was successful. No more details have been obtained since, so you would need to ask MM how he sees it working.

It will be important for MM to ensure he is aware of likely local reaction to various potential decisions he could make, and we can obviously offer guidance in this area. Whether MM follows our recommendations is another matter. We have already offered to sit down with him after the takeover and go through our views on LCFC's strengths and weaknesses.

[davieG]

From Sky

Milan Mandaric is hoping to finally conclude his takeover of Leicester City in the coming days.

The former Portsmouth chairman first made an offer for the Championship club over two months ago, but has yet to finalise the £25million purchase.

Mandaric is now keen for the situation to be resolved within the next week and believes a deal is close to completion.

The Serbian businessman also reiterated his ambition to restore The Foxes to a place in the Premiership.

"We're trying to come close to concluding within several days," said Mandaric. "I'd like it to happen then.

"I'm not interested in keeping Leicester at the level the club is now. My aim is to go back to the Premiership and nothing less than that.

"This club belongs nowhere, but the Premiership. I want to elevate the club and bring it to the level the fans deserve.

"I have a very ambitious plan and will do everything humanly possible to fulfil my plans.

"I wouldn't want to get involved, if I wasn't going to do a proper job."

[Fez of Mahrez]

Mandaric sets date for takeover

Milan Mandaric is hopeful his £25m takeover of Leicester will go through before the weekend.

The former Portsmouth owner has become frustrated by the delay in finalising a deal, but is confident any remaining glitches will soon be ironed out.

"We are close," Mandaric told BBC Sport. "There are a couple of issues that need to be resolved hopefully in the next few days.

"Definitely by the game against Birmingham on Saturday."

Mandaric was expected to have made a formal bid for the club before Christmas after being given permission to look at the club's books in November.

But the period of due diligence brought up issues that have delayed matters.

"It's a frustrating time for me. It's taking so long, much longer than I thought," Mandaric added.

"The explanation from the lawyers is always the same: it's a public company, it takes time to satisfy the code and the panel.

"They are always issues related to commercial or financial deals and some unknown things I need to look over and make a decision on immediately.

At this time I'm not looking for a manager or anything else

Milan Mandaric

"If I looked at this as a business we would probably walk away but I'm keen to get back in football.

"Sometimes you have to close your eyes on some of the things because football doesn't always bring the clean-cut situation in a business sense.

"I'd like to get it done one way or the other as this is not what I anticipated.

"It's not at my end. It is something I need to overcome and I wasn't quite aware of. I'm not accusing or pointing the finger at anyone it was just something that was found during investigation.

"The price is not the problem whatsoever. It has been agreed."

Mandaric denied weekend reports he will appoint former Crystal Palace and Charlton manager Iain Dowie when he takes over - saying he has been impressed with current boss Rob Kelly.

He added: "At this time I'm not looking for a manager or anything else. I just want to resolve the ownership of the club and then look at existing structure.

"I'm not committed to Iain Dowie or anyone else at this point.

"Unfortunately I have not been allowed many dealings with the manager (Kelly) but I did have the opportunity to meet with him two or three times.

"He is a good solid young man who is a great coach and apparently gets on well with players and probably gets the best out of them.

"I don't know much about him or his capabilities but so far I'm impressed with him."

[davieG]

Posted by the FT on the Fox forum @ 12.56

Remembering the final bid is still not in front of us, but from what we have seen to date.

Stadium wise - we believe the Teachers deal will just be maintained until we get into the Premiership. If we then stay there with the £m's from Sky money MM then may look at buying the ground (you could argue that the current board would have had the same option, but we have to get there first).

Shareholders - no payment up front, may not get all money back.

[davieG]

Official Statement

Leicester City have today sent their best wishes to Milan Mandaric after news emerged that his mother has been taken ill.

Mandaric has flown out of the country to comfort his mother, and as a result of that discussions with the Club have been put on 'temporary hold'.

A statement from Mandaric's advisors said: "Due to personal and unforeseen circumstances Milan Mandaric's ongoing negotiations with LCFC have had to be put on temporary hold.

"Milan flew to Europe this morning to be with his 86-year-old mother who has been taken seriously ill in hospital.

"Unfortunately her condition remains unstable and Milan would ask and appreciate people to respect his privacy at a time of worrying personal concern."

A Club Spokesman added: "On behalf of everyone connected with Leicester City Football Club, the Board of Directors, management, players, staff and supporters would like to send their good wishes to Milan Mandaric and his family at this difficult time."

A further statement will follow as and when appropriate.