Investcorp have been forced into action after the emergence of RedBird as a competitor to their takeover bid and they are readying a new offer, a report claims.
MilanNews confirm that the €1.1bn proposal from the Cardinale-led fund RedBird is highly regarded by Elliott Management as it proposes a better formula. The first offer from Investcorp involved €400m of loans in addition to €800m of equity, while Elliott do not want to laden the club with debt having spent so long improving the accounts.
However, the report cites Bahraini sources in claiming that Investcorp and Muhammad Al-Ardhi are ready to try again with a new bid as this investment has become a priority for the Bahrain fund, who would like to increase their assets from €40bn to €100bn over the next decade.
Investcorp’s offer must have a much higher equity part and at least half of the initially proposed loan sum, so as not to hinder Milan’s balance sheet. Elliott want to wait for the end of the season to have greater clarity on this year’s accounting, and then sell.