Italy's Berlusconi warming to Chinese bid for AC Milan: source
Reuters
Published May 07, 2016 11:00AM ET
Updated May 07, 2016 11:10AM ET
Italy's Berlusconi warming to Chinese bid for AC Milan: source
MILAN (Reuters) - Former Italian prime minister Silvio Berlusconi's family company is likely to open exclusive talks next week with a group of Chinese investors interested in buying AC Milan soccer club, one of his most cherished assets, a source said on Saturday.
The tycoon is under pressure to finally relax his grip on the club he calls "my Milan", which has failed to win any major silverware in the past five years and is now in the red.
However, the club remains one of the most famous names in world soccer, having being crowned champions of Europe seven times and winning 18 Italian titles.
"It's very likely that an agreement will be reached next week that will lead to a deal in the next month," a source familiar with the situation said on Saturday.
The agreement would be between the consortium, and Berlusconi's family holding company, Fininvest. The makeup of the Chinese group is not clear.
The consortium has valued the club at 700 million euros ($798 million), including debt, another source said last week. The club had 188.5 million euros in debt at end-2015 and made a net loss of 89.3 million euros.
A deal to sell all of AC Milan is still far from certain.
Berlusconi, 79, has proven very reluctant to relinquish control of the club, though he has said he cannot give it the kind of additional capital that wealthy Arab and Asian investors have been pumping into AC Milan's European rivals.
Last June, a group led by Thai businessman Bee Taechaubol reached a deal to buy a majority stake in AC Milan.
A person who followed the negotiations said Berlusconi changed his mind at the last minute and decided at the time he did not want to sell more than 48 percent in the club.
The agreement was revised to sell the 48 percent for 480 million euros, but the new deal was never finalized.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.