No deal, Straumur tell Gold

  • by Staff Writer
  • Tuesday, 15th December 2009

A report in this morning's papers says that CB Holdings are set to reject David Gold and David Sullivan's ?50million offer for control of West Ham United.

According to this morning's Times, yesterday's bid by the former owners of Birmingham City will be turned down due to the major interest in CB Holdings, Straumur Bank, looking set to be granted a nine-month extension to their current moratorium.

An extension to the current agreement - which would be the second granted this year - would allow CB Holdings vital breathing space in their search for someone willing to meet their demands, considered unrealistic by many. Should the decision go against Straumur an instant sale would almost certainly be forced - however that appears unlikely to be the case.

Gold and Sullivan are said to have presented two different proposals to Rothschilds, the bankers appointed by CB Holdings to liaise with any potential bidders. The first offer was ?50million for the outright purchase of the club, with a second reduced offer for a 50% share in the club.

CB Holdings - who look set to become the target of disenchanted supporters at this weekend's live TV clash with Chelsea - are thought to value the club at around ?120million. With debts of around ?40million to take into consideration the asking price is around ?80million - some 60% higher than the figure offered by Gold and Sullivan.

Meanwhile one left-field rumour that continues to crop up concerns fomer chairman Terry Brown who, it is claimed, is involved with one of the other parties looking to put an end to the Icelandic's disastrous reign.

Brown walked out of West Ham some ?70million the richer when he sold his shares to Eggert Magnusson and Bjorgolfur Gudmundsson in 2006 - just 15 years after he bought a place on the club's board with a ?2million loan.

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