MURRAY IN BID TO GAZUMP WHYTE; THE BATTLE FOR IBROX IBROX TAKEOVER ... IBROX Director Paul unveils shock pounds 25m buyout plan Now Craig on brink of walking away from deal IBROX TAKEOVER ... IBROX.

Byline: James Traynor

CRAIG WHYTE'S pounds 25million Rangers takeover has been delayed because of a last-minute counter offer lobbed in by one of the club's directors.

And Paul Murray claims his buy-out plan would provide new manager Ally McCoist with an instant pounds 25m war chest.

But Whyte's camp hit back, claiming his deal is worth pounds 52.5m in total.

They also stressed that although there would be an initial team investment of pounds 10m that transfer pot would increase if McCoist convinced the new owner more was required. A source close to Whyte also suggested if he is forced to further delay his attempt while Rangers directors scrutinise Murray's plan it might be too late.

The source said last night: "He will not wait much longer."

He also pointed out Rangers could be left in serious trouble if Whyte walked and Murray's funding didn't materialise.

It is believed Murray has had his own meetings with David Murray in an attempt to gain control of Rangers before Whyte. Paul Turn to Page 51

From Back Page Murray tried to get the club for pounds 18m towards the end of 2009 along with fellow Ibrox director Dave King and motoring and bus tycoon Douglas Park but they were dismissed.

David Murray refused to sell to them and later took down the Ibrox for sale signs.

But Whyte arrived unannounced on the scene last November and after what seemed like an eternity the club's owner, the bank and the Motherwell-born venture capitalist agreed a pounds 25m deal.

All three parties wanted to conclude business on Monday afternoon but the independent five-man board set up to run the rule over any bids refused to pass Whyte's offer.

They don't have power of veto but business etiquette and boardroom politics means they can delay the process further.

One or two but not all Rangers directors are convinced non-executive director Murray, who joined the board in 2007, can carry off his attempted coup.

Details of where the pounds 25m for new players will come from or of how he hopes to get the club from David Murray and Lloyds, who are determined to remove Rangers' debt from their books, are sketchy but the board want time to consider this late run by Murray.

It is likely, however, that he and his backers intend approaching Lloyds seeking to keep the current credit facilities in place but using the full pounds 25m to invest in the squad and the stadium.

Untrue They could issue new shares to help raise the money and also dilute the current owner's holding.

The independent board will have to examine and question Murray's plan just as they have tried to do with Whyte's package.

And Rangers chairman Alastair Johnston, in a statement last night, hinted the documents detailing Whyte's offer don't reflect the investment they were led to believe would be there.

But Whyte's team claimed any suggestions he didn't have the money or funding he said he could provide were not only untrue but defamatory.

Whyte was said to be furious about the further delay but the independent board - Johnston, chief executive Martin Bain, finance director Donald McIntyre, and nonexecutive directors John McClelland and John Greig - insist they have only recently been able to get a look at the detailed agreements that David Murray, Lloyds and Whyte have been working on.

And it's fair to say they are far from happy or convinced.

Johnston, who is also chairman of the independent board, issued a statement saying: "The independent sub-committee of the board of Rangers wish to clarify certain media comment and speculation relating to its position with respect to the proposed transaction among the Murray Group, Craig Whyte and Lloyds Banking Group.

"We have fiduciary duties to look after the interests of all the stakeholders in the club. In particular we have legal responsibilities to ensure that the proposed transaction serves the best interests of the 26,400 minority shareholders, many of whom are season-ticket holders.

"For some time the board has had major concerns about its engagement in the process. After nearly six months of negotiation we have only very recently had the opportunity to meet Craig Whyte and his team.

"Moreover, it is only in the last few days we have started to receive the draft agreements outlining the transaction, although we are still awaiting a detailed working capital statement demonstrating that there is sufficient funding in place to meet the pressing needs of the club.

"Based on the documents we have only been able to review within the last week, we are disappointed they ultimately did not reflect the investment in the club we were led to believe for the last few months would be a commitment in the purchase agreement.

"Given the requirement to repay the bank in full under the proposed transaction, there appears to be only a relatively modest amount of money available that would positively impact the club's operations, especially as it relates to an urgent requirement to replenish and upgrade the playing squad.

"While the proposed transaction has addressed the interests of Lloyds Bank, the Murray Group and Craig Whyte, our perspective is solely directed towards the future of Rangers Football Club.

"To this end the board has had an approach from one of its directors who wishes us to consider an alternative funding option.

"This would involve a fresh issue of new capital to raise pounds 25m to be invested directly into the club.

"The board believes it has a responsibility to examine this proposal while continuing its review of the Craig Whyte transaction.

"After six months of limited engagement in the process the board believes is not in the best interests of its stakeholders for it to be pressed into an unrealistic timescale.

Misguided "On Monday I had a lengthy conversation with Craig Whyte explaining the dilemma the board now faces. It was a constructive and healthy dialogue, and while he expressed his frustration, he understood our position.

"We agreed to remain in touch in terms of working towards a resolution that is in the best interests of all parties involved as we receive more information relating to his financial commitment to Rangers."

Paul Murray, a chartered accountant, has 18 years' experience in the private equity industry and worked for Deutsche Bank but will need to use all his experience at this late stage of the takeover game to get his alternative plan through.

But the Whyte source claimed the move by the independent board makes no sense and is clearly a misguided attempt to further delay or disrupt his deal.

He said: "For a start the deal Craig is putting forward is worth pounds 52.5m, more than double the amount apparently to be raised by this unnamed Rangers director.

"Further, the Craig investment in the club would begin on day one of a deal being completed. Most importantly, it would mean the debt owed to Lloyds would be cleared which has been one of the key demands of the entire deal.

"Proof of funds has been given to Murray International Holdings and Lloyds. This means that not only will debt be repaid immediately but that pounds 10m will go into Rangers' bank account on the first day as working capital. Any contrary suggestion about funding is not only untrue but also defamatory.

"There is no certainty this new proposal has any likelihood of success whereas the deal being put forward by Craig is real, it can happen immediately and will help secure the future of Rangers FC.

"Craig's proposed deal has been fully accepted and agreed by both MIH and the Lloyds Banking Group as the right deal for Rangers.

"It appears to be only one or two members of the current Rangers board who seem intent on delaying this deal and if that happens and the deal collapses it will be very bad news for Rangers and the loyal fans who deserve better."

GAZUMP

CAPTION(S):

POWER STRUGGLE: Rangers director Paul Murray, top, and Craig Whyte, below, are vying for control of the club BIG DEAL: King and Paul Murray, right, failed with 2009 takeover bid. Now Alastair Johnston, below left, and Martin Bain, centre, are studying the new offer to buy out David Murray

Article Details

Printer friendly Cite/link Email Feedback
Title Annotation:	Sport
Publication:	Daily Record (Glasgow, Scotland)
Date:	Apr 20, 2011
Words:	1378
Previous Article:	I NEED TITLE FOR A NEW DEAL.
Next Article:	RAISING OURGAME; SCOTS CHIEF TELLS HOW CONTEST MADE IT INTO BIG LEAGUE World Cup is still 10 years on.. Homeless helping people to change their lives...