Sarver Pulls Out Of Rangers Bid

Photo by Jeff Holmes Robert Sarver has pulled the plug on his bid to buy Rangers after the Ibrox board rejected his £20million takeover offer. The US financier wanted to buy a controlling stake in the crisis-hit Glasgow outfit but saw his hopes spurned when the Rangers directors decided they could not get 75 per cent of shareholders to back him. Now the 53-year-old has opted against making a further bid - paving the way for the Three Bears, wealthy fans Douglas Park, George Letham and George Taylor, to offer up a £6.5million emergency loan. In a statement given to the Stock Exchange shortly after midday, Sarver said: "I'm disappointed the Rangers board has rejected my revised offer, which addressed the club's immediate and long-term needs. "Clearly the current directors have a different path they want to go down. I hope for the sake of the club and the fans, who've been very warm and supportive towards me, that it works out. "I wish the club and fans the best of luck. If they want my support in the future, then they only have to ask." Sarver's statement also said that he "reserves the right" to make another offer for the club within the next six months.

In a separate statement issued by his Scottish PR advisor, Sarver also explained that the board's "continued failure to provide a counter offer or engage in any meaningful negotiations" was behind his decision to walk away. Sarver, who already owns NBA side the Phoenix Suns, was made aware of the perilous state of Rangers finances by former Ibrox defender David Robertson, who now coaches at the club where the American banker's sons play in Arizona. He made his first move just after Christmas when he offered the board an £18million deal but saw it rejected last Tuesday. But Sarver responded 48 hours later when he came back with an improved £20million bid that also included an immediate #6.5million crisis loan which would have allowed the club to see out the rest of the month. In return for this, Sarver - who is also chief executive of the Western Alliance Bancorporation - wanted the club to call an urgent general meeting to vote on proposals to hand him enough new shares to give him control of 51 per cent of Rangers. He then planned to make an offer to buy up all remaining stock at 20p per share. But the club's directors were left hamstrung by the decision to vote down their own resolution at last month's AGM which would have allowed them to issue new shares to fresh investors without first offering them to existing stakeholders. They were then blind-sided when first the Three Bears and then Dave King made two surprise share purchases, handing them control of 34 per cent of the club. In a 7am notice to the Stock Exchange, the club announced: "The Board of Rangers has considered the revised possible offer from Robert Sarver (or a vehicle to be established and controlled by him) ("Mr Sarver") which Mr Sarver announced on 8 January. "The revised proposal by Mr Sarver was similar to his first proposal in the respect that it sought a placing of 100 million shares (to be priced at 20p in this proposal) (''Placing) which, would require the approval of shareholders (at least a 75 per cent majority) at a general meeting. "The Board of Rangers rejected the first proposal from Mr Sarver on 6 January on the basis that the Board felt it unlikely that the approval of shareholders holding sufficient shares would be forthcoming. "Following receipt of the revised proposal from Mr Sarver, the Board has sought the views of a number of major shareholders on this revised proposal and has reached the same conclusion, namely that the resolution to approve the placing is unlikely to achieve the 75 per cent majority required. "Accordingly, once again, the Directors do not intend to hold the General Meeting which would be necessary to implement the revised proposal." The question now for the board is one of how to raise the short-term cash they desperately need to keep the club afloat. The Three Bears have left a £6.5million investment plan on the table but the ruling regime could yet turn to Newcastle owner Mike Ashley for yet more help. Ashley, who owns 8.92 per cent of Rangers, has already handed the club a £3million loan as the Sports Direct tycoon seeks to protect his lucrative commercial contracts. But after placing associates Derek Llambias and Barry Leach on to the board, he risks another confrontation with the Scottish Football Association - who have already charged him with breaching "dual ownership" rules - if he deepens his Ibrox involvement while remaining in charge at St James' Park. He may, however, decide to work with the Bears who, along with King, are nearing the kind of shareholder support which would allow them to call an emergency general meeting and make wholesale changes to the Ibrox board.