Mittal won't be held to ransom by Briatore and Ecclestone over sale of QPR

[paulmason]

http://www.fulhamchronicle.co.uk/london-sport/london-qpr/2011/06/09/mittal-won-t-be-held-to-ransom-by-briatore-and-ecclestone-over-sale-of-qpr-82029-28845552/

By Paul Warburton
Jun 9 2011

LAKSHMI Mittal is unlikely to make any fresh bid to take control of QPR – unless majority shareholders Bernie Ecclestone and Flavio Briatore invite him back to the table.

The richest man in Britain offered £33million for the pair’s stake described as ‘insultingly low’ by Briatore, who wanted closer to £70m for the duo’s controlling interest.

The fall-out made casualties out of son-in-law Amit Bhatia, who resigned as vice chair, and the departure of chief executive Ishan Saksena.

Sources close to Mittal believe the former racing chief is holding out for a bigger offer from a man who could buy QPR 200 times over. It looks as if they are in for a long wait.

The source said: "It’s not good business sense just to pay what someone demands – even if you can afford it. There are no plans to make an improved bid, or sell the Mittal stake in the club (33%)."

[dave58]

If this is True I think Mittals valuation is about right maybe £40 Mill but definately not £70Mill. Talk about get rich quick. also if Mittals own 33% and according to people Bernie owns 62% how can someome (Flav) who own 5% have so much say in the club or is Bernie just his puppet.

[QPROslo]

I wouldn't read too much into this article. In negotiations like this it is pretty common to issue statememts like the one Mittal has made ("you have to invite me back to the playground, unless I will not play with you"). Issuing such a statement signals continued interest as I see it, as the alternative would be to say there is no longer any interst on our side, and we pursue other avenues. I think both buyer and seller will come down from their respective fences and clinch a deal somewhere in the middle - lets say around £50m, but it will take some time - nothing is imminent I think. However, I wouldn't rule out a bid from a third party. There are probably one or two rich sheiks out there willing to buy a London based Premier League club for £40-50m. The valuation of a football club does not only rely on fundamental financial parameters, but as much on finding the right buyer being tempted by the high profile appearance coming with owning a Premier League club. I don't even rule out that Bernie will find someone that will match his valuation - I don't find £70m for 67% of QPR completely insane to be honest, if you take into consideration the the none-financial aspects that attract certain people.