CorSport: RedBird come forward with bid to buy Milan – why Investcorp are still in the lead

By Oliver Fisher -

The news broke yesterday that AC Milan are the subject of yet another takeover bid, this time from RedBird Capital partners.

As Corriere dello Sport (via MilanNews) writes this morning, RedBird Capital Partners – an American company that manages assets of $4.5bn dollars and which has Gerry Cardinale as its top man – have come forward with a bid to try and hijack Investcorp’s takeover.

The exclusivity period granted by Elliott Management to the Bahrain fund ended after two weeks meaning the bid from RedBird is very much allowed, but it also does not mean that the negotiation between the American fund and Investcorp has hit a dead end.

As already reported in recent days, the postponement of the signing of contracts is due more to bureaucratic and architectural issues of the agreement, which provides for the drafting of complex contracts, meaning banking giants like Goldman Sachs and JP Morgan are also involved.

RedBird should not be underestimated though simply because of the name and prestige it boasts within investments in the world of sport. The company manages capital that is close to $5bn dollars almost entirely in the world of sports.

One of Cardinale’s latest deals was the acquisition of 10% of Fenway Sports Group for $750m, the fund that controls both Liverpool and one of America’s top baseball teams, the Boston Red Sox.

They went into French football in the summer of 2020, when the American company took over 85% of Toulouse, a team that are back in Ligue 1. The offer of Cardinale and his associated is €1bn, therefore slightly lower than that of Investcorp who are happy to pay €1.18bn, putting them in the lead.

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