Gillett and Hicks block Liverpool takeover

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The battle for the future ownership of Liverpool has taken a fresh twist, with current co-owners George Gillett and Tom Hicks gaining a temporary restraining order to block the sale of the club.

Gillett and Hicks took action in a Texas District Court after the High Court in London had earlier dismissed their attempts to prevent a takeover by New England Sports Ventures.

Law firm Fish & Richardson, acting for Gillett and Hicks are seeking damages of $1.6billion, alleging that the duo have been the victims of an 'epic swindle' and a 'grand conspiracy'.

A statement from Fish & Richardson continued:"The director defendants were acting merely as pawns of RBS, wholly abdicating the fiduciary responsibilities that they owed in the sale.

"RBS has been complicit in this scheme with the director defendants. For example, in letters from RBS to potential investors obtained just within the past few days, RBS has informed investors that it will approve of a deal only if there is 'no economic return to equity' for Messrs. Hicks and Gillett.

"In furtherance of this grand conspiracy, on information and belief, RBS has improperly used its influence as the club's creditor and as a worldwide banking leader to prevent any transaction that would permit Messrs. Hicks and Gillett to recover any of their initial investment in the club, much less share in the substantial appreciation in the value of Liverpool FC that their investments have created."

A statement from Liverpool's current board responded:"Following the successful conclusion of High Court proceedings, the boards of directors of Kop Football and Kop Holdings met tonight and resolved to complete the sale of Liverpool FC to New England Sports Ventures.

"Regrettably, Thomas Hicks and George Gillett have obtained a Temporary Restraining Order from a Texas District Court against the independent directors, Royal Bank of Scotland PLC and NESV to prevent the transaction being completed.

"The independent directors consider the restraining order to be unwarranted and damaging and will move as swiftly as possible to seek to have it removed."

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Article title: Gillett and Hicks block Liverpool takeover

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