Usmanov extends no takeover promise at Arsenal

AFP - 28 February 2008 14:22

Alisher Usmanov, seen here in 2007, the Russian metals billionaire behind leading Arsenal shareholder Red and White Holdings, said Thursday he had no plans to launch a takeover of the English Premier League leaders within the next six months.

LONDON (AFP) - Alisher Usmanov, the Russian metals billionaire behind leading Arsenal shareholder Red and White Holdings, said Thursday he had no plans to launch a takeover of the English Premier League leaders within the next six months.

Red and White's announcement came ahead of the end on Saturday of an initial six-month 'no takeover' bid under British company law rules which was put in place when Usmanov announced his intention not to take full control of Arsenal back in August.

In a statement to the London Stock Exchange, Red and White said: "Red and White is pleased to confirm that it has no current intention to make an offer for Arsenal Holdings plc ('Arsenal') and is committing to this position for a further six months.

"Red and White has the necessary funding to increase its stake further. However, it confirms that it will not acquire a shareholding in Arsenal which would trigger an obligation to make an offer for the shares in Arsenal."

Earlier this month Red and White increased its stake in the north London club to over 24 percent, fractionally behind that held by longstanding majority shareholder Danny Fiszman.

But it has since announced plans to take a 25 percent 'blocking' stake.

A 30 percent holding would require Red and White to launch a formal takeover bid under Stock Exchange rules.

Red and White, whose chairman is David Dein, the former Arsenal vice-chairman, is owned by Usmanov and business associate Farhad Moshiri, a London-based investor.

It was formed in August following the initial sale of Dein's 14.5 percent stake in the north London club stock 75 million pounds. By October Red and White had increased its stake to 23 percent.

Usmanov's taking a stake in Arsenal led to a 'lock-down' agreement between the other members of the Gunners board who said they would not sell shares that might, if they fell into other hands, lead to a takeover of the club.

But the current lock-down agreement expires in April although the present board do have an option to extend it.

And Red and White stressed Thursday that were the conditions of that lock-down agreement to change, it would reconsider its 'no-takeover' position. They also highlighted other conditions that could lead them to make an outright bid within the next six months - an invitation to make an offer by the Arsenal board, a material change in the club's circumstances and the prospect of an offer by a third party.

However, Red and White sought to quell concerns about the future of the club's ownership by saying: "As the largest shareholder in Arsenal, Red and White is delighted with the excellent results of the club on the field and would encourage all parties to focus on a trophy-winning conclusion to the domestic and European campaigns."

Usmanov's interest in British football follows in the footsteps of oil billionaire Roman Abramovich, owner of Arsenal's capital rivals Chelsea.

Arsenal, who face Aston Villa this weekend, currently top the Premier League table by three points from champions Manchester United.