Often Partisan

More on the Paladini Bid

Rumours regarding a bid for Birmingham City intensified when former QPR Chairman Gianni Paladini yesterday confirmed that he is heading a consortium looking to make an offer for the Blues worth around £25million. However, it has also surfaced that Carson Yeung wants at least £40mil – half of what he valued the club at when he bought it in 2009 which would mean that there is some way to go before any price would be agreed.

The disparity between supposed package offered and alleged price wanted is pretty big, but with the vagueness of the terms involved it’s difficult to see how quickly (if at all) a price can be agreed. The package offered by Paladini would not just be a straight cash price for Birmingham City Football Club – there would also have to be some agreement with respect to the approximate £21million that BCFC owes Carson Yeung and it’s parent company BIH.

It’s worth noting at this point a key distinction in the sale process – the bid is for BCFC plc and not BIrmingham International Holdings which means that the shares in the holding company would not have to be unsuspended for the deal to go through. However, as BCFC represents such a huge chunk of what BIH is worth, shareholder approval will have to be gained before the deal could be passed.

The fact shareholder approval would be required gives some insight into how long the process could take. Once a price has been agreed between a buyer and the BIH board a date for an Extraordinary General Meeting would need to be agreed and then announced. The EGM would be called to allow shareholders to vote on a resolution put forward by the board to accept the sale of BCFC. If and when that is agreed then the sale can go through. The board are required to give 2-3 weeks notice of an EGM in an announcement to the HKSE, and you would think a sale would take a couple of weeks or so to finalise once approval had been got. Add a week to organise the details of the EGM and you have a six week period from a price being agreed to the sale going through – which means we’ll be lucky to see a sale before Carson is in court regardless of any other outside interference.

It should also be noted that Carson only owns around a quarter of BIH and that more than half of the company is in the hands of small investors. Carson would require the support of these smaller investors for the sale to go through.

Whatever happens to this bid, it represents a change for Birmingham City. For the first time in the reign of Carson we have a bidder who has announced publicly he wants to take on the club and if Paladini is to be believed we receive some confirmation in his interview that the club has been up for sale for a while.

It’s my belief that if BIH are in a position to sell the club that they cannot hold on to it for much longer. There have been various stories reported on this site about BIH (and Carson himself) being unable to service debts and with September 30 being the one year anniversary of when the overdue accounts first came due you would think that the holding company are going to be under immense pressure to sell and take what money they can. The big question is when that pressure becomes unbearable and how much further they will agree to drop in price.

Talking Points sponsored by John Hicken Industrial roofing and cladding materials

Tags: , , , ,

48 Responses to “More on the Paladini Bid”

  • BluenoseDownunder says:

    I see this as good news Almajir, whether this ever goes through or not at least the message is now out there for other prospective bidders/buyers further down the track. More importantly the message should be getting through to the current owners that enough is enough and one way or the other it’s time for change … KRO

    • NooBloo says:

      I dont see anything good about it because I wonder how it could work.

      Carson Yeung as far as I see it could potentially have all of his assets frozen or even taken from him under the ”proceeds of crime act”

      This being the case, why would he liqudate the shares by selling just to have them taken away from him. I think he is therefore more likely to hold on to the shares until he is either found not guilty or any sentenced passed, if convvicted.

      I know the case is not in the UK courts but i dont think that matters. i think there would be seperate charges brought here in the UK to sieze assets if he gets convicted abroad.

  • ChrisG says:

    There is a lot of speculation as usual when these things come around & it depends on which story you read as to what’s been offered, at first it was £12 million & then Paladini has supposedly said it’s actualy £25 million. Also again depending on the story they’re either NOT gonna be throwing silly money at the club in an attempt to get us into the prem, or, the’re a very rich bunch with bottomless pockets!!!. Either way it doesn’t really matter at the moment cos the transfer window is CLOSED!!. If this is all to go through then at least we do have time on our hands before the next window is open so hopefully it will be resolved by then. Still not sure about this Paladini bloke though if reports about him are to be true. Will he pass the due dilligence test????. KRO

  • Paul Carter - The Voice Of Reason says:

    Before we start perceiving Paladini as the white knight we need to know more about the ‘consortium’ he’s heading. We need to know who’s in it and their wealth and background. We need to be sure whoever they are have the wherewithal to take the club forward and get us back to operating as a football club properly again and also that their wealth is clear and traceable. Him going on about being mates with the Zulus worries the heck out of me it does not make me feel all warm and happy. Him being involved in previous clubs whom he didn’t support concerns me, his actions whilst there worry me. Not convinced and what we really need is a takeover by people who will not appear in newspapers etc… but just work in the background improving our club

    • almajir says:

      I agree with a lot of that Paul.

      • alexjhurley says:

        And I do. Frying pans and fires methinks.

      • maurice walters says:

        dont we all al but we will have to wait and see after all it is BCFC so watch this space

      • Paul Carter - The Voice Of Reason says:

        They don’t call me the voice of reason for nothing Dan :)

        • middle-smudge says:

          Can I raise the point that the majority of blues fans and most brummies (even those in pink on the otherside of the tracks) are friends/ associates/workmates with a zulu or zulu wana’be. Mr Paladini and his family live in Solihull, so the fact that he has said that he is friends with members of zulus surely means he is amongst fans of the boys in blue and white and that he is aware of how proud we are of our club which can only by a positive…and not to mention that his son is a bluenose!!!

          I actually know the family – not Mr Paladini himself but his daughter and i live with his niece – what i do know is that he is a very clever and ruthless business man, it is these qualities which have made him so successful and just what the club needs. he knows what this league all about and showed it by turning QPR fortunes around by winning back-to-back promotions!

          so i say happy days!

          To be honest when i heard the news yesterday, i was overjoyed! i am surprised to find so much apprehension on here.

          KRO

          • Paul Carter - The Voice Of Reason says:

            His colleague at QPR, Mr Mittal would be nice… the richest man living in Europe and the richest man with an Asian nationality :)

          • nicky wicky says:

            mr mittal is supposed to be the worlds richest man with a personal fortune of £27billion.

      • Paul Carter - The Voice Of Reason says:

        I think he said it for the right reasons ie to display a connection to the club but I agree it wasn’t the best claim to make. I’m not writing him off cos of this though, just cautious on the pantomine that was QPR and who else makes up the consortium. A clear and acheivable business plan is needed also not like the last one of a network of Blues bars all over China :)

    • Blooflame says:

      Good points of which I wasn’t aware! However, messrs Gold and Sullivan weren’t Blues fans and they got us into the black and reasonably successful.

  • CitySteve says:

    In reply to Paul, what influence would we have on the prospective buyers…we, the fans are of little consequence at this or any stage in the purchace of the club. Yes we would like to know who this or any consortium are, but from their point of view, thats all.
    If they, the successful purchasers pass the league or FA’s due diligence that is all that matters to a successful bidder.

  • Art Watson says:

    Almajir,

    Yet another first class assessment and report of the potential acquisition of BCFC.

    Please accept my thanks and gratitude for keeping everyone informed.

    Art

  • jon says:

    i too am not sure about paladini after what he did at qpr … but whoever takes over lets for gods sake get it right this time weve had enough dodgy owners this one has got to be right for bcfc

    • Blooflame says:

      Jon, I keep hearing this…what exactly was he supposed to have done wrong at the (newly promoted) club he was at? I think he was a success. I hear he left over personal differences, but who really knows? He MUST be better than what we have right now. But I’d genuinely be grateful mate if you can educate me in what it is he done wrong becaus e I honestly don’t know

  • Tamuffblue says:

    Be careful of Italians bearing gifts !!!!!! the best thing about this is that there are people out there willing to take us on AND that the barmy barber is willing to sell !!!!! the interesting thread here is that thay have been trying to sell for 12 months !!!! which contrites what people in the know have been saying !!! I think ownership will stay out in the far east seeing us as a cash cow leading to the green filds of the premier

  • Paul Kimber says:

    Thing is if the consortium DOES have alot of money and thier wealth is “clear and traceable” how much will they put in will be the big question that fans would want answered. For example Bill Gates could buy the club but just buy small fee and free transfers, (Like were doing now) in other words just because the consortium rich dosm’t mean they will invest heavly into Blues.

  • Dave Sherlock says:

    Hmm where’s blues answer to Jeremy preece when you need him… No more porn kings or dodgy chancers please

  • Gary says:

    Paladini has already stated in his radio interview that he’ll not throw “silly money” at it – while we’re in the CHAMPIONSHIP, he did, however, concede that they’d have to spend money if we got promoted. I think he mentioned that in the Championship, you don’t have to spend 10 Million on one player, but you could spend that on a few players if you’re clever and you know the type of player that’s ideal for the Championship. I also think that Paladini has been somewhat tarnished with the brush of Briatore – this guy was at QPR for 8 years as chairman, Briatore was only there for 3 years. In that time Paladini oversaw QPR being promoted from League 1 to the premiership. Basically, he achieved what he set out to achieve. If he comes in, then I think we should all keep an open mind and give him a chance – a bit like you have to do when a new Manager comes in, or a new player.

    • Taz says:

      I think you have hit the nail on the head there Gary. Although I still remain slightly dubious, I am more relaxed about this possible deal now that I know that Briatore is not part of the consortium. If his bid is successful then I will be prepared to judge him on what he does at Blues rather than what he did at any other football club.
      In the meantime, I am going to continue to think positive about this.

    • Blooflame says:

      Fully agree! Who are we to expect a millionaire to throw his fortune down a “black hole” that is underperforming/ overpaid footballers & Managers. Better to build from the bottom,COACH your way out of trouble as did Ajax etc… Anyone can have adequate success with a cheque book, but it’s a short lived success

  • tc says:

    Wasn’t he a former agent ? lots of rumors did the rounds saying he paid off agents at qpr and i can only see him being a front man for others which always seems dubious to me..

  • evesham blue says:

    The main positive thing is at least some bidder has come forth publicly instead of this cloak and dagger speculation of bidders waiting in the wings. I just cant see CY selling for that price unless he is has no choice. Why do Blues never get investors with money to pump into a club? Unless we can buy players again for decent transfer fees we will never make it out of this division tbh

  • Paul Carter - The Voice Of Reason says:

    Agreed

    It also alerts other would be bidders that we are available if they hadn’t realise before and that there is already an interested party.

  • Paul Carter - The Voice Of Reason says:

    Agreed

    It also alerts other would be bidders that we are available to buy if they hadn’t realised before and that there is already an interested party.

  • jon says:

    and is the manager going to be allowed to manage and get the players he wants

    • Taz says:

      Why shouldn’t he Jon? I seem to remember the same accusations of interference being made against Yeung and Pannu when they first came but, since they took control there has been no evidence of them interfering with team selection or tactics.
      Think positive.

  • Oldbluenose says:

    Almajir;, What are the rules of takeovers/ buyouts, etc;, ?.

    For example,– Carson Yueng, decides to sell up, [ but only has 25% to 30% of ownership, ] ?. If only a few others decide to sell their shares, — How high the purchase %, needs to be purchased, ??.

    In reverse, ?. — Others may flock to sell, but Carson decides not to, ?????????.

  • James says:

    I am hoping this interest attracts others; ideally those who are transparent and without Paladini’s track record. Stating “i know the zulu’s” is embarrasing to say the least, looks like another chancer who enjoys the fame.

    KRO

    • Oldbluenose says:

      James, mate, Your comments highlight the fact that any ” sane ” businessman would hardly wish to identify himself with the Zulu’s, — Methinks that he knows so little about our club, that he just grasped at a name from the past thinking it would prove knowledge of the club, ????????.

      • Pete Flamingo says:

        Agree with most of the above, good news that there is interest , cautious optimism about this consortium.
        I think this zulu reference simply goes back to the mid 80s when I remember this chap being a regular in Boogies bar, with some of his oppos, and at the time some of the well known bad boys congregated there and also ran the door. He is bound to know them from then, as he was a minor celeb back then – I think from memory everyone knew he was an agent and if I’m right he was involved in selling David Platt from the vile to Bari.

  • James says:

    OBN – I know. Hence the embarrasment.

    • Paul Carter - The Voice Of Reason says:

      I think he said it for the right reasons ie to display a connection to the club but I agree it wasn’t the best claim to make. I’m not writing him off cos of this though, just cautious on the pantomine that was QPR and who else makes up the consortium. A clear and acheivable business plan is needed also not like the last one of a network of Blues bars all over China :)

  • JP Caffery says:

    Interested to hear peoples thoughts on this guy once you’ve read the entry on Wikipedia

    http://en.wikipedia.org/wiki/Gianni_Paladini

    Personally, i’m thinking the Kumar’s could be part of the consortium!!!

  • Tom says:

    If Carson does get sent to prison then surely it’s not up to him how much his shares in the club get sold for? If I was the Italian I would give him a penny and tell him to f*** orf

  • Paulo says:

    The word ‘consortium’ makes me nervous. In fact, Paladini makes me nervous. This whole takeover story does not seem like it has a happy ending at all. What’s worse is that he is not only delusional, he could make it really happen, which would’nt bear thinking about.
    ..mates with the zulus …have a day off …total idiot.

  • chris says:

    i wonder if the shares aren’t trading as they would be ripe for a takeover and not trading stops this.
    Paladini could buy the shares cheaply and aquire BIHL & Blues above the 50% mark and he wouldn’t need to buy Yeung’s shares, but until they are trading i assume he could buy the shares privately off the other major holders if they could agree on the price.
    Tom, if he goes to prison then he may well keep his shares, depends on the fine / punishment he gets.
    As far as i am aware he is just a shareholder now not a director.

  • andy says:

    According to Paladini, talks between his party and Pannu have gone on for 2 months. Im of the opinion the bid made only covers the loans Carson has put into the club and i cant see this takeover happening unless the reported 40-50 Million Carson wants, is put up. This wont happen either and i think its a case of waiting to see whether Carson and BIHL go to the wall.

  • jazzzy786 says:

    Carson Yeung bought Blues for £80M when it was worth nowhere near that amount. Paladini seems in a hurry to do a deal when he could get the club for a lot less if he waited. Call me a sceptic but why would any businessman want to pay any more than he had to? There seems something wrong here and the company this man keeps screams DANGER to me.

    • Oldbluenose says:

      I confess to a horrible feeling about this proposed deal also, !!.

      There have been several references to Mr L, Mittal, made on this blog, — Now there is a man I believe would start from the bottom-up, in re-building our club onto a VERY stable basis, !!!.

  • Blue Steve says:

    For some reason I am sceptical about Paladinis intentions. He has said himself that he is not going to pump lots of money in and QPR fans seem to have only bad things to say. If Carson is found not guilty I think he would probably put more money in. Big IF though. KRO

  • josh says:

    Listen this is what I have to say, paladini’s son is a blues fan and he wouldn’t want his son to be let down bye him if anythink what worser can our club get into, if he is willing to pay off dept for us then that would be great! when I saw the news that paladini wanted to take of blues I was overjoyed at first I couldn’t believe it because he lives in solihull and his family supposts blues so he will not let down his family or the fans!

  • ezio says:

    Josh your right on that, I am his cousen and I have been speaking to him, he said to me he will not let down the family or fans and he is willing to pay whatever dept there is and to get this club really far.

  • Paul Carter - The voice of reason says:

    What else would he say?

  • swissjonny says:

    The consortiums timing is very clever.CY will obviously be feeling the pressure right now so may well decide to cut and run .If he does try to stay on and is found guilty all Hell could break loose and-God Forbid-the Club could be put into administration or some sort of fire sale.This would require a potential purchaser to move very quicly and rush any due diligence as all kinds of vultures may be circling.Unless of course you had spent a leisurely couple of months digging around and having all your questions answered….Its a win win for these boys.Get the Club on the cheap now from a worried man or be the only people with an acceptable amount of info available to do a quick deal with a Receiver or administrator if things really go wrong.Maybe Im just getting cynical in old age.


Personalised Gifts for a Bluenose
Haircuts and League Cups
Open Tax Services
Corporate Solutions UK
PJ Planning
Rodal Heating

Archives