DUBAI PULL OUT OF LIVERPOOL DEAL

Liverpool are on the verge of following Manchester United by slipping into the hands of an American billionaire after Dubai International Capital, dismayed at what it considers unacceptable procrastination by the Premiership club's board, decided to withdraw its takeover bid.

DIC, the state-owned private equity firm given exclusive rights to negotiate a takeover and scrutinise the club's books last month, announced yesterday it was “disappointed” but felt compelled to break off talks.

DIC were frustrated by the decision on Tuesday by Liverpool's chairman, David Moores, to examine a £175m counter bid by George Gillett Jr, owner of the Montreal Canadiens ice hockey team and formerly of the Harlem Globetrotters, at a board meeting at a Docklands hotel before the Premiership match at West Ham. That offer will now be pursued and is likely to be agreed within the next few days.

That will infuriate DIC. Al Ansari's group believed Moores had agreed in principle to its £155m package, which valued club shares at £4,500 each, with assurances that it would fund the £180m new stadium on Stanley Park and cover the club's £80m debts. However, relations became strained recently with Moores arguing with DIC officials at the recent home game with Chelsea.

The emergence of Gillett's bid, submitted last week, has offered Liverpool a convenient alternative, valuing the club at nearer £5,000 a share. Moores would stand to make some £8m more if he sold his 51.6% stake to the American with shareholders, including Granada and the building tycoon Steve Morgan, anxious to examine a better financial offer.