Another billionaire buys into Arsenal

With all the emphasis on Stan Kroenke, English Arsenal now has another would-be buyer at its doorstep.

Uzbekistan's Alisher Usmanov purchased 14.58 percent of the club from former vice-chairman David Dein. Dein, it will be recalled, resigned following his support for a Kroenke takeover bid.

Dein sold his stake to Usmanov for GBP 75 million after buying in at GBP 292,000 in 1983. An investment company known as Red & White has been formed by Usmanov and London's Farhad Moshiri.

Now Arenal is pondering if there are two separate entities trying to take over the club. Or, a more sobering prospect, perhaps the two groups will link for one takeover attempt, pooling the 27 percent stake between the two of them.

A share of 29.9 percent requires a formal takeover bid to be launched.

Red & White tried to assuage fears a bit, saying they had "no current intention" to make a takeover offer. But Usmanov has hinted that he would like to build additional shares in the club. Red & White will now try to persuade Kroenke to sell his 12.19 percent stake, ahead of launching a full bid.

Kroenke's decision to waive the opportunity to buy Dein's stake casts doubt on his intention to seize full control of Arsenal, and also sheds light on his relationship with Dein, which is believed to have cooled recently.

Dein view is that now he has given the club two billionaire resources to tap. They can pour investment into the club and help it maintain its elite status in the Premier League.

"The club has to accept they need a huge injection of money. I'm afraid we're going to get left behind," Dein told the News of the World. "Arsenal say they are in great shape today but we're not talking about today, we're talking about the future.”

Arsenal's managing director Keith Edelman says the club do not need an investment and are well-placed to fend off any takeover bid.

"The current shareholders on the board control over 45% of shares and we believe the way the club is being run and the financial strength of the club will come through. "The club is in a very good position, and the stadium is producing very large cash balances for us," Edelman told the BBC.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.