Investcorp has not taken kindly the intromission of RedBird Capital in their attempt to acquire Milan and issued a warning to Elliott. The parties had been negotiating since the start of April. The potential buyers have completed a thorough due diligence without finding any problems. However, the period of exclusivity has lapsed.
According to Sky Sport, the talks slowed down dramatically as the parties were about to proceed with the signing. The current owners have concerns about the actual resources of the Bahraini funds. Some reports suggested they would pay €800M in equity and get €400M through financing. The second part risks being added to the debt of the club if unpaid in the future.
Investcorp has urged Elliott to make a decision quickly, lamenting the way they conducted the negotiation to set up the Milan takeover. The tension between the parties is mounting, which may jeopardize the deal. Neither has provided official comments in the last few days.
The interference by RedBird Capital has come just in time. They might be seen as better equipped considering their experience in sports. Moreover, their offer is reportedly entirely liquid and would not impact the team’s finances down the line.
On the other hand, the American conglomerate has not started the due diligence, which significantly delays the process. Investcorp would have taken control of the outfit right after the end of the season and before the start of the transfer market window. That would not be the case with the rival suitors.