The Takeover Thread - Recon Group - NOW WITH NEW POLL

[Villa in Denmark]

I agree with your rationale VID but there appears to be a log jam.  I cannot see it being anything minor like seeing out the season or the effect on season ticket sales.  My hunch is that the highest bidder wants to bring in their own manager.  The under bidders with more of an eye for a bargain will go through with Hollis's choice of manager, at least in the short term.

Surely if there are 3 bidders who've all completed due dilligence (as suggested above) the most likely delay will be us deciding which we're going to make the approved bidder.

I'll take that claim with a pinch of salt as

1.) It's Howard Hodgson spouting to the media. Unless he's part of one the groups how would he know? And if he was part of one of the groups and gobbing of to the media I can't imagine his partners being too chuffed to see how much they're prepared to pay being thrown out for public consumption.

2.) Why would 3 groups go to the expense of due diligence? Isn't normal practice for a preferred bidder to be given a time restricted period of exclusivity to carry out due diligence, thus minimising the chance of wasted money.

[mattjpa]

I agree with your rationale VID but there appears to be a log jam.  I cannot see it being anything minor like seeing out the season or the effect on season ticket sales.  My hunch is that the highest bidder wants to bring in their own manager.  The under bidders with more of an eye for a bargain will go through with Hollis's choice of manager, at least in the short term.

Surely if there are 3 bidders who've all completed due dilligence (as suggested above) the most likely delay will be us deciding which we're going to make the approved bidder.

I'll take that claim with a pinch of salt as

1.) It's Howard Hodgson spouting to the media. Unless he's part of one the groups how would he know? And if he was part of one of the groups and gobbing of to the media I can't imagine his partners being too chuffed to see how much they're prepared to pay being thrown out for public consumption.

2.) Why would 3 groups go to the expense of due diligence? Isn't normal practice for a preferred bidder to be given a time restricted period of exclusivity to carry out due diligence, thus minimising the chance of wasted money.

(2) I think it is dependant on the situation, ie they can request a period of exclusivity be granted. I would imagine that with the need for a quick sale and the reduced asking price it is being dealt with "open book" with a cut off date for bids received to be reviewed and a buyer to be selected. To be fair though I probably know about as much as Howard Hodgeson...

[Ian.]

Maybe all the bidders would actually look at Pearson and agree he is the right choice. Maybe, I know not many would agree, but Randy does care about the club and would want a manager in as soon as possible to help re-build while the sale is going through. The sale might collapse and then we're in shit creak without a manager for too long a period.

[DaveD]

You usually need to make a firm bid to get exclusivity. If it's just expressing an interest, or an indicative offer, then why would you block off other suitors.

[Villa in Denmark]

I agree with your rationale VID but there appears to be a log jam.  I cannot see it being anything minor like seeing out the season or the effect on season ticket sales.  My hunch is that the highest bidder wants to bring in their own manager.  The under bidders with more of an eye for a bargain will go through with Hollis's choice of manager, at least in the short term.

Surely if there are 3 bidders who've all completed due dilligence (as suggested above) the most likely delay will be us deciding which we're going to make the approved bidder.

I'll take that claim with a pinch of salt as

1.) It's Howard Hodgson spouting to the media. Unless he's part of one the groups how would he know? And if he was part of one of the groups and gobbing of to the media I can't imagine his partners being too chuffed to see how much they're prepared to pay being thrown out for public consumption.

2.) Why would 3 groups go to the expense of due diligence? Isn't normal practice for a preferred bidder to be given a time restricted period of exclusivity to carry out due diligence, thus minimising the chance of wasted money.

(2) I think it is dependant on the situation, ie they can request a period of exclusivity be granted. I would imagine that with the need for a quick sale and the reduced asking price it is being dealt with "open book" with a cut off date for bids received to be reviewed and a buyer to be selected. To be fair though I probably know about as much as Howard Hodgeson...

Even if it is been dealt with open book, that still doesn't explain why 3 groups would simultaneously go to due diligence and the expense that incurs without thinking that they've got pole position.

[Chris Jameson]

Not sure that he knows more than anyone else, but Howard Hodgson was on WM earlier saying that there are three interested parties, all of who have passed the due diligence stage.  He said the price is around £100m, £25m of which is to pay off debts. 

Has this Hodgson fella ever been right about anything? He strikes me as the sort who is desperate to be seen to be in the loop or in the know but get the feeling a lot of it is just chinese whispers and guesswork.

He was right about Sherwood being a tremendous appointment though.

[PaulWinch again]

Not sure that he knows more than anyone else, but Howard Hodgson was on WM earlier saying that there are three interested parties, all of who have passed the due diligence stage.  He said the price is around £100m, £25m of which is to pay off debts. 

Has this Hodgson fella ever been right about anything? He strikes me as the sort who is desperate to be seen to be in the loop or in the know but get the feeling a lot of it is just chinese whispers and guesswork.

He was right about Sherwood being a tremendous appointment though.

Indeed and as others have said why would 3 separate parties go through due diligence?

[pauliewalnuts]

Not sure that he knows more than anyone else, but Howard Hodgson was on WM earlier saying that there are three interested parties, all of who have passed the due diligence stage.  He said the price is around £100m, £25m of which is to pay off debts. 

What does "to pay off debts" mean in this situation, though? Whose debts?

If they're to pay off money the club owes, then they'd just pay 100m and pay off the debts with that.

£100m. Jesus.

How much of a really shit businessman do you have to be to buy a club for 65m, spend ten years watching it accrue ever higher television revenues, as interest in the game goes on growing, and at the end of it, it's only worth 35m more than it was before.

Fuck me, that's some awful "stewardship" (his word) there.

[mr underhill]

Given that we are now a Chumps League club, I'm actually amazed at the figure of £!00m.

[TheMalandro]

Not sure that he knows more than anyone else, but Howard Hodgson was on WM earlier saying that there are three interested parties, all of who have passed the due diligence stage.  He said the price is around £100m, £25m of which is to pay off debts. 

What does "to pay off debts" mean in this situation, though? Whose debts?

If they're to pay off money the club owes, then they'd just pay 100m and pay off the debts with that.

£100m. Jesus.

How much of a really shit businessman do you have to be to buy a club for 65m, spend ten years watching it accrue ever higher television revenues, as interest in the game goes on growing, and at the end of it, it's only worth 35m more than it was before.

Fuck me, that's some awful "stewardship" (his word) there.

That's why I'm convinced we will be sold this summer. With a good managerial appointment and sensible player investment, you could have a £250 million pound club in a year.
It's still a big gamble.

[paul_e]

I agree with your rationale VID but there appears to be a log jam.  I cannot see it being anything minor like seeing out the season or the effect on season ticket sales.  My hunch is that the highest bidder wants to bring in their own manager.  The under bidders with more of an eye for a bargain will go through with Hollis's choice of manager, at least in the short term.

Surely if there are 3 bidders who've all completed due dilligence (as suggested above) the most likely delay will be us deciding which we're going to make the approved bidder.

I'll take that claim with a pinch of salt as

1.) It's Howard Hodgson spouting to the media. Unless he's part of one the groups how would he know? And if he was part of one of the groups and gobbing of to the media I can't imagine his partners being too chuffed to see how much they're prepared to pay being thrown out for public consumption.

2.) Why would 3 groups go to the expense of due diligence? Isn't normal practice for a preferred bidder to be given a time restricted period of exclusivity to carry out due diligence, thus minimising the chance of wasted money.

You misunderstand me, I think Hodgson is full of shit but I'm just pointing out that if there are 3 bidders who are showing real interest (but maybe not with completed due diligence) then they will all have different ideas and that will be the cause for any delays with a new manager or with replacing board members.  The other reason I could see for a delay is that a new owner and their chosen manager might want to wait until the season is over and then be announced so they aren't associated with it in any way.

[Chris Jameson]

Surely nobody who is serious about buying the club is going to do anything without reading the latest Hodgson Report?

[TheMalandro]

Surely nobody who is serious about buying the club is going to do anything without reading the latest Hodgson Report?

Pure jealousy. The looks, the yacht, fast cars and his Hollywood career. Shame on you Jameson.

[chrisw1]

Surely nobody who is serious about buying the club is going to do anything without reading the latest Hodgson Report?

I'll get my 4 year old nephew to knock them up a new one in crayon. I'm sure it will be just as insightful.

[Mister E]

I agree with your rationale VID but there appears to be a log jam.  I cannot see it being anything minor like seeing out the season or the effect on season ticket sales.  My hunch is that the highest bidder wants to bring in their own manager.  The under bidders with more of an eye for a bargain will go through with Hollis's choice of manager, at least in the short term.

Surely if there are 3 bidders who've all completed due dilligence (as suggested above) the most likely delay will be us deciding which we're going to make the approved bidder.

That seems the most plausible situation, Paul.
And, if there are three bidders it is perfectly possible that they will have some access to data from the club in order to make a sensible bid. Whether you'd use the term 'due diligence' in that situation is a matter of opinion.
If the bidders have all got to a point where thety can make a sensibile bid based on sufficient data, the next stage would be for the club to prefer one of them and start agreeing the terms of a sale; whcih could take a while yet.