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Usmanov's Plans?

Arsenal
by Bunburyist (U3287105) 28 September 2007
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There have been some questions recently about what Usmanov's increasing shares will mean for the club; in particular, what is a 'blocking stake', and how will this affect the club?

A blocking stake is "a stake high enough to make the corporate running of the club more tricky to carry out" (BBC Business); it means, basically, that anyone with a certain amount of investment in the club has a right to begin to have a say in certain corporate matters. The important thing to remember, in Arsenal's case in particular, is that the majority of the shareholders retain the most control, and not only do they have Arsenal's best interests at heart, they also have no plans of selling their shares to Usmanov. It is also important to remember that a blocking stake will have little to no effect on the day-to-day decisions of Wenger and the players.

So what if Usmanov gets 29.9% and makes a takeover bid? By all accounts, the majority shareholders will refuse the offer. This means Usmanov's only remaining option would be a hostile takeover, but this also makes it more complicted for him. The financing he would require in order to make the bid would depend on the decision of a bank, and banks are notoriously loathe to back hostile takeovers due to the risk involved. However, even if Usmanov was successful in securing the cash, there are a number of effective strategies available to the current shareholders for blocking such a hostile takeover.

Most of the fans' concerns emanate from the effect such speculation or events might have on the future of Wenger. Justifiably so. In this case, it is fair to say that corporate matters really do have an effect on what occurs on the pitch. But people still wrongly believe that an Usmanov takeover would result in Wenger being fired or leaving of his own accord (through his conviction that foreign ownership is bad for the league). Fans forget that Dein--the chairman of Red and White Holdings--is a close friend of Wenger, and in the event of an Usmanov takeover, would do his utmost to keep the manager. Secondly, Wenger has clearly stated that, despite his feelings about foreign ownership, he will continue to work hard for Arsenal:

"Whatever happens at that level doesn't concern us all," he told Sky Sports News. "We have a big responsibility to keep people who own the club happy, no matter who it is."

I think as fans we can take a measure of comfort in that, and also some advice. We may all disagree on what a takeover from a Russian billionaire might mean (more debt for us, in all likelihood), and on what the 'best thing for the club' might be, but the one thing that will never change is our support for Arsenal.

Latest 10 comments

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posted Oct 3, 2007

Ar5enalwin IS Dein, surely?

Every other Gooner on here seems to know what's going on, and doesn't want the crook Usmanov running things. Good on you all! ok

The difference between you lot and the Man Citeh fans' adulation of Killer Thaksin is a breath of fresh air.

Hope you win the Prem this season ok

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posted Oct 3, 2007

Fuhrer??

Eva Braun?


You'd imply that I'm a filthy schiessekopf nazi?!


Fraulein Ar5enalin, you are a disgusting creature to accuse one of such a thing!!!

I hope you choke on your drink!!!

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posted Oct 3, 2007

FOR EVER BROWN DROPPING LTD

v

RED & WHITE HOLDINGS LTD

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posted Oct 3, 2007

How's about neither of those Ar5enalwin?


That's pretty low to make insinuations like that to a poster who merely countered your arguments.


Can't say I'm really surprised.

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posted Oct 5, 2007

Arsenal chairman Peter Hill-Wood has urged American investor Stan Kroenke to help the board block a takeover by Russian billionaire Alisher Usmanov.

Kroenke has a 12% stake in the Gunners and his shares could be a significant target for Usmanov, who has increased his holding to 23%.

Acquiring them would give his investment vehicle, Red and White Holdings Ltd, the opportunity to launch a hostile takeover bid for the whole company.

Arsenal's board members between them hold 45% and have signed a "lockdown" agreement to refuse to sell their shares in the short term.

Part of the reason for the agreement was because of Kroenke's increasing investment and fear he might launch a takeover bid.

Hill-Wood even said of Kroenke: "We don't need need his money and we don't need his sort".

The situation has changed, however, since former vice-chairman David Dein sold his 14.58% share to Usmanov. Dein is chairman of Red and White Holdings Ltd.

Hill-Wood, who met Kroenke earlier this week, told the Daily Telegraph: "I think it would be rather nice if he [Kroenke] would join the lockdown. It's obviously up to him, but we would certainly welcome it.

"He now sees the benefits from a long-term relationship with us and he is not remotely interested in making a bid.

"He knows perfectly well what we are up to with the lockdown and I don't think he disapproves of it.

"We have been comforted by that. We don't want to be taken over."
-----------------------------------------------------------------
I think it astonishing that the snobbery (no point beating about the bush it WAS PURE SNOBBERY) of Peter Hill Wood) not wanting the 'SORTS' of Kroenke may have come back to bite him.

He now begs his support.

But has he burned his BRIDGES?

Should he have said what he did about KROENKE?


Made a mistake? Or would you like to update it?

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comment by U2951129

posted Oct 5, 2007

I think it astonishing that the snobbery (no point beating about the bush it WAS PURE SNOBBERY) of Peter Hill Wood) not wanting the 'SORTS' of Kroenke

*Why? because we certainly don't need his sort. People in it purely for profit.

He now begs his support.

*Hardly, your take on what people say is so warped around your ridiculous ideas that you try and mould them into vacuous comments when he said 'It would be nice for him to join the lockdown FOR THE LONG TERM SECURITY NAD PROSPERITY OF THE CLUB.'

But has he burned his BRIDGES?

*Not at all, Kroenke met with them this week and if you look at PHW's commments again, you will see Kroenke doesn't want to be part of a takeover, so can assume - because that is what you do permanently, he knows money is better staying where it is.

Should he have said what he did about KROENKE?

*Yes, we, not he, we, didn't want some rich foreign investor coming over and spoiling the soul of our club

Made a mistake? Or would you like to update it?

*Not at all, you?

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posted Oct 5, 2007

It would appear that advisers to Alisher Usmanov have been going through the Arsenal share register with a fine tooth comb, to try to identify shares they can buy.

The target for the moment remains to get to the 25% blocking stake. The board are confident that they and their friends and associates have over 50%. With Stan Kroenke having 12.8% and Red and White, Usmanov's vehicle, having 23.16% this leaves nearly 15% around in the hands of small shareholders.


However, the Usmanov exercise is to find shareholders with 50 or more shares and I understand there are some 20 or so of these shareholdings.

If Usmanov can tempt them with upwards of £10,000 per share, an amount he has already paid, there may be sellers. This will ease Usmanov's path to getting to his target of a 25% blocking share-holding.

This holding is important for Usmanov because, as the Arsenal board get friendlier with Stan Kroenke, Usmanov needs to stop any plans the board might have to thwart a possible Red and White take-over of the north London club. Such plans could include an arrangement with Kroenke but any such scheme would require a 75% majority and, if Usmanov has 25%, he could stop it.

This week has seen a massive charm offensive by Usmanov with the British football press. Clearly this goes hand in hand with a different kind of charm offensive being directed at the Arsenal shareholders.

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comment by U2951129

posted Oct 6, 2007

I see you won't respond to my comments.

Is this because you realise you're wrong.

You are a waste of time young man...

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posted Oct 6, 2007

comment by Goonerdiabadouble - AKA. Rowley Birkin QC
posted Yesterday

*Yes, we, not he, we, didn't want some rich foreign investor coming over and spoiling the soul of our club.
-------------------------
Apologies old timer.

I am sorry if you feel your soul is at stake.

Or is it a collective soul?

Our Souls to the end me thinks.
-------------------------
Football is unlike many human activities cause most people become irrational.

Just as a parent always sees good in their child fans always seem to see the best in the love of the team they support.

People here fly off the handle over an opinion, the likes of PHW see a foreign investor as somehow a destroyer of souls.

PHW sees the likes of USMANOV and KROENKE as a threat to the history and traditions that make him and more broadly arsenal fans who they are.

This really is some kind of Romantic RUBBISH, it sdimply doesnt exist.

As for PHW, well it seems to me that PHW is a bit of a buffoon. His stuck up attitude the way he seems to so easily make enemies
of the people he is should spokesman for as chairman of the club.

First there was DEIN.
Then KROENKE.
Now USMANOV.

These are powerful people to p*** off.

POINT 1

ON PHW "SUCKING UP" TO KROENKE:

HE only made the sTATEMENT AS HE SEES HIS own position under threat, after all, USMANOV appears be siding with Kroenke

Interestingly, earlier this week, Usmanov praised Kroenke and spoke of his fondness for his ice hockey team, the Colorado Avalanche.

"Kroenke is the best shareholder in the football club," Usmanov said. "He is the best type of chairman and I like the Colorado Avalanche hockey team, they are very good."

PHW the worst type of hypocite. He looks down his nose at KROENKE, then when it appears he might need his support he makes a complete U-turn.

POINT 2

Burned BRIDGES

Only time will tell, but he strikes me as PHW is a complete IDIOT. It seems he will soon have almost 50% of shareholders that he has either personally insulted,
fired, or slandered (Some media sources are suggesting that Usmanov is a little angry with the board, and in particular Peter Hill-Wood for describing
his business dealings as 'murky').

POINT 3

Should he have said what he did about KROENKE?

Why is is clever to make derogatory remarks against people that may eventually take over your club?

Why comment at all.

Please explain to me why is was so clever?



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posted Oct 13, 2007

go back 2 russia. we dont want u in our country

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