Blue Knights told to up Rangers bid
30 Apr 2012
Rangers’ administrators Duff and Phelps have stated they expect the Blue Knights consortium to submit an improved bid for the club after confirming formal offers from it and American businessman Bill Miller.
The Blue Knights, which are led by former Rangers director Paul Murray, on Friday joined forces with Brian Kennedy, the owner of English Aviva Premiership rugby union club Sale Sharks, to submit what they described as a “substantial” written offer for the administration-hit Scottish Premier League (SPL) club. Their bid is subject to a Company Voluntary Agreement (CVA) being struck with creditors and the acquisition of current owner Craig Whyte’s shares.
Miller has also made his interest in Rangers official, albeit with the condition that the club will face no further sanctions next season following its 10-point SPL penalty for entering administration. “Both parties know the bid has got to be commercially at a level which would be acceptable to creditors,” joint administrator David Whitehouse told BBC Scotland. “Bill Miller’s bid is acceptable at that level. The only barrier to Bill Miller’s bid is regulatory clearance.”
The Blue Knights’ current bid reportedly falls significantly short of that entered by Miller and Whitehouse has urged the consortium to increase its offer. “It’s been publicised that bid in quantum terms is £13 million,” Whitehouse said of the Blue Knights bid. “That is not correct. It’s very substantially lower than that and we have been in ongoing dialogue with Brian Kennedy on behalf of the Blue Knights…and we understand that he may be revising his bid.” He added: “What we’re saying to Brian Kennedy and the Blue Knights is we are encouraging them to re-visit that offer and get it at a level where commercially it may be acceptable to the creditors. We’re not in a position to quote a figure – they know a range. Bill Miller’s bid is in the public domain and they have got a clear indication of the range of numbers which would be deliverable in other scenarios.”