ROBERT SARVER will make no further bids to buy Rangers after a second proposal to take over the club for £20 million was rejected by the board.
The US financier had wanted to buy a controlling stake in the club and had vowed to hand the ailing Glasgow giants another £6.5 million up front as part of a crisis loan to see them through the rest of the month.
But the Ibrox outfit have been forced to reject Sarver’s offer after deciding they do not have enough shareholder support to pass it - and now Sarver has announced that he will not make further attempts to purchase a majority stake in the club.
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.”
However, Sarver, according to the statement released today, has reserved the right to make an offer within the next six months.
The offer was the second bid from the American businessman who last week offered £18m to takover the cash-strapped club.
That offer too was rejected by the board as it was deemed to be below their valuation.
Sarver - who already owns NBA side the Pheonix Suns - wanted the club to call an emergency meeting to vote on proposals to hand him enough new shares to give him in control of 51 per cent of Rangers.
The 53-year-old then planned to make an offer to buy up all remaining stock at 20p per share.
But the American banker needed the support of 75 per cent of the club’s shareholders after the board voted down its own resolution at last month’s AGM which would have allowed it to issue new shares to fresh investors without first offering them to existing stakeholders.
CONNECT WITH THE SCOTSMAN
• Subscribe to our daily newsletter (requires registration) and get the latest news, sport and business headlines delivered to your inbox every morning
• You can also follow us on Facebook, Twitter and Google +
READ MORE: Rangers bid: Robert Sarver denies Mike Ashley link
Those hopes were ruined, however, when the board was blindsided as first the Three Bears - wealthy supporters Douglas Park, George Letham and George Taylor - 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% 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% majority required.
“Accordingly, once again, the Directors do not intend to hold the General Meeting which would be necessary to implement the revised proposal.”
SCOTSMAN TABLET AND IPHONE APPS