Bid by Lithuanian bank to takeover Rangers was 'kicked out' over organised crime fears

A possible bid by a Lithuanian bank to takeover Rangers was kicked out amid fears of its connection to organised crime.

The proposal emerged as Sir David Murray looked to sell his controlling stake at Ibrox.

Another bid – with links to the brother of an English Premier League manager – was also dismissed as it was deemed to be a fraud.

Craig Whyte later struck a deal with Sir David to take the helm at Rangers in May 2011.

A key adviser of Sir David today said Whyte stated funding was coming from his own “personal resources”.

A jury heard the claims at the 46 year-old's trial at the High Court in Glasgow.

He denies a charge of fraud and a second allegation under the Companies Act in connection with his takeover.

Michael McGill - a director at Sir David's Murray Group and then later at Rangers - today gave evidence.

The accountant had a key role in the “restructuring” of the tycoon's businesses after being hit by the economic crisis in 2008.

Sir David later put Rangers on the market in 2009 – but the court heard again how there was “not a huge amount of interest”.

Mr McGill said some bidders were “more serious than others”.

This included an approach by two individuals said to have links to the brother of an un-named English football boss.

They produced a letter from a Belgian bank stating they had 50m Euros to invest

But, one of the pair was found to have the same name as someone banned from being a company director in the UK.

The letter was also discovered to be “fraudulent” and a “forge”.

An offer funded by a Lithuanian bank then became known.

The court heard it seemed to be “an institution” that had the “wherewithal” to complete a sale.

But, Mr McGill told the court the Murray Group became “extremely uncomfortable” dealing with the Lithuanian bank.

The witness said there had been accusations it was involved in “organised crime and money laundering”.

There were also added concerns about any “furore” given publicity surrounding the Lithuanian owners of another Scottish club at that time.

Whyte later came forward with a takeover proposal. Mr McGill said he first met him in October 2010 at a lawyers office in London.

Prosecutor Alex Prentice asked Mr McGill if there had later been discussion about the “source of funds” for the bid.

The witness: “At all times, Mr Whyte assured us that the fund were coming from his own personal resources.”

Mr McGill said they had also been keen to know Whyte would cope with the “peaks and troughs” of the “cash demands” of a football club.

Prosecutors claim Whyte helped fund his takeover by getting a loan from Ticketus against three years of future season ticket sales.

Mr McGill said Rangers had used the firm in the past for “short term working capital”

He admitted this had not been shown in the club's accounts - but claimed there had been “no desire hide” it.

Mr McGill, however, said using Ticketus might have been a “sensitive issue” for some supporters.

This was after Leeds United effectively sold off season tickets before hitting serious financial problems.

Mr McGill was later asked what his reaction would have been if he had known Ticketus cash was to help fund the takeover.

He replied: “Using the season ticket money in that manner was completely unpalatable to us.”

The accountant added it made “no sense” to effectively replace one banks debt with another.

Mr McGill earlier said Sir David did not want to “simply walk away” from Rangers and that it was “crucial” the club was being left in good hands.

The trial, before Judge Lady Stacey, continues.