Often Partisan

Paladini Bid; One Week On

It has now been one week since it was reported by the Birmingham Mail that there has been a formal bid been made by a consortium fronted by Gianni Paladini and there has still been no announcement from the Hong Kong Stock Exchange. With there being lots of questions on social media etc I have gathered together what information I can.

Is there a time limit for an announcement to be made?

Quite simply, the answer to this question is no. Rules regarding announcements to the HKSE are governed by Chapter 13 of the HKSE rules, which is linked in PDF format for you here.

As per various announcements made recently by BIH to the HKSE, the relevant rule is 13.09. The full text is quite long-winded but what it boils down to is that BIH are duty-bound to announce anything to the stock exchange that affects it’s listing and that shareholders need to be aware of. It also mentions that whilst confidentiality must be respected, BIH must make an announcement if news will be in the public arena.

Essentially, what this means in this particular case is that as the negotiations between Pannu and any consortium are confidential, Pannu doesn’t have to make any announcement unless it’s in the press out in HK.

We can use the first reported bid made by the Gianni Paladini Consortium as an example:

The bid was reported initially on 11 September 2012 – link here.
It was denied by BCFC.com on 14 September 2012 – link here.
It was first reported by a Hong Kong newspaper, South China Morning Post on 16 September 2012 – link here.
BIH make an announcement to the Stock Exchange 21 September 2012 – link here.

As you can see, BIH made their announcement as they were forced to respond to the details published in the Hong Kong press. As yet, there has been no news at all published in Hong Kong about the recent bid from Gianni Paladini’s consortium. Therefore, BIH have no obligation to make any announcement about a bid.

Does this mean the bid has been rejected?

Bearing in mind that Gianni Paladini hasn’t spoken to the press since the bid was made, I would have to say that it is my belief that the answer to that question is no. I would assume that if a bid had been rejected we’d hear about it via the press as Paladini is known to talk a lot to the media.

Is there any time limit for a bid to be accepted?

Legally, there isn’t. However, in practicality one must assume that there must be some sort of brinkmanship going on. Working on the (likely) assumption that Birmingham International Holdings are struggling financially, one would assume that Carson and Mr Pannu have a limited time to accept any bid before the company is put into some form of administration. Administration would take the decision out of the hands of Mr Pannu, meaning that in all likelihood a lower bid would be accepted. Secondly, it would then attract other potential buyers as there would be more chance of a good deal being made and thirdly, administrators would undoubtedly work to look at the outstanding accounts and publish quickly any problems that they have found – all of which would be unsatisfactory to Carson et al.

Once a bid is accepted is that it?

Assuming it’s still Mr Pannu dealing with the bid, it would then have to go to shareholder approval – which is outlined in Chapter 14 of the HKSE rules, linked in PDF form here. This would mean an Extraordinary General Meeting (EGM) of shareholders would have to be called and they would have to vote to ratify the proposal. As Carson Yeung is a director of BCFC he wouldn’t be allowed to vote on the proposal; however any shareholder with voting rights that wasn’t financially interested in BCFC would be. As has been previously stated this takes time and would make it unlikely for any deal to be completed now before the new year.

As more information breaks I will endeavour to keep you updated.

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52 Responses to “Paladini Bid; One Week On”

  • Oldbluenose says:

    ALMAJIRl, Is it possible that Peter Pannu, is using the Paladini, bid to ” stir-up ” interest from the other ” possible ” bidders, ?.

  • Jason says:

    You would think it would be in their interests to sell up prior to the transfer window. Could have impact on value if players are sold prior to any takeover.

  • Paulo says:

    Appreciate the update almajir! You’ve pretty much said it all, and I was expecting to hear something today on the bid, as some were saying it was D-Day for the Paladini consortium’s bid to be accepted. Well, in typrical HK fashion it appears nothing has been done in the world of common sense, and now I feel we have to now accept that financially we are so bad that by the time any bid is going to be accepted now, it will be the January transfer window and BCFC will desperately need cashflow to survive ..and the window will be looked at seriously.
    I have the feeling that all of us blues fans are going to be let down big time. The things I could say about CY, PP and BIHL right now are not printable, but the one thing that all of them have in copious amounts ..is very poor communication skills.
    I can only hope and pray that the lads and LC can win a shed load of games now, so if we get belted with a 10 point penalty, at least we have some hope of surviving in the championship, that is if administration is even mentioned.
    Maybe I’m being a little pesimistic, but at the same time I am keeping the faith. KRO.

  • Tom Ross says:

    It only needs 51% of shareholders to agree to sale. and As I understand it they have what is called friendly shareholders that should get it to that with No problem?
    My worry is that BIHL are in difficulty no accounts published to confirm that, but if they were to go bust then control of sale is out of Peter Pannus hands and he would not want that so it’s surely in his interest to sell quickly.?
    Paldini wants in quickly and want’s to bring in new players in January. The problem is that with the threat of administration hanging over the clubs head if no sale is made then they will sell players in Jan to keep the club going and away from administration so for all concermned a quick sale is not just preferable but imperative.

    • almajir says:

      I agree Tom – but something is holding him up. Lord only knows what.

      (before people ask, yes, that is the real Tom Ross)

      • Sam (@sdp1338) says:

        Surely though if the sale isn’t through by jan but paladinis bid is accepted, the bid is for all of the playing staff too? So paladini would not hold through with 30 mill if 12 mill+ worth of players are gone? Without the young talent the club in its current state is worth hardly anything.

    • Gary says:

      Almajir, Tom – it needs to be sold quickly, hence my confusion of why the bid is taking so long to be accepted. It’s the only bid on the table and they’re playing an unnecessary game of “Russian Roulette” – what’s the point? The only thing I can think of is that the 30 Million offer isn’t good enough, which in their (BIHL) position is frankly pathetic and bewildering. I want to put this to you, Almajir, Tom, do you think the current bartering is over the ‘initial fee’ – that they basically want more money up front, that they’re quite happy with 30 Million but they want more than 17 Million up front, as has been reported??

    • Paulo says:

      Tom, at least you have pointed out the fact that it is in PP’s interests to sell quick sharp, and yes I so dislike the ‘administration’ word, but I do feel cheated and generally dismissed as a blues fan (as no doubt others do too) in that this whole BIHL fiasco has now carried on and on to the point that they (BIHL) could well now financially ruin our club ..not just any club, but OUR club, the club that we all contribute to out of our hard earned wages.

      • Blueboy88 says:

        Almajir there are still a small ammount of Blues supporters who retained their shares in the club ,

        I guess they will be given the opportunity to vote on any take-over bid ?
        & could they be forced to sell by any future take over ?

    • Paul Carter - The Voice Of Reason says:

      2 things Tom

      As CY only owns roughly a quarter of the business even if he agrees to a sale that’s not enough to make it happen, he will need another 26% to agree (or thereabouts)

      Also I’m assuming that most of the investors in the company wont know much about football as a business generally and it may be a task to explain to them that it’s a good idea to sell at £30m an asset you bought for £85m.

      My personal belief from the start is that the bid will be rejected as too low. I think if it was the sole decision of CY he’d sell but not the others.

      (and before anyone asks yes this is the real Paul Carter – The Voice Of Reason, bringing wisdom and clarity to OP)

    • Jay Sidney says:

      I sometimes strongly disagree with Paul but this is a serious argument re his view on how Carson Yeung would need another 26% to be able to make the final decision on a sale.

      Also, if it’s thought the £30m offer the Paladini consortium is said to have offered would be too low, how much higher would it ned to go to be considered sufficient? I say this as most media sources have said (rightly or wrongly) that £40m is the figure Yeung is really looking for.

      It is not also the case that, if the faceless people behind Yeung try to cling on indefinitely, this would only increase the risk of the club being forced into receivership? If that happened, would we not be back to a similar position to the early 1990s when David Sulllivan was able to buy BCFC for a comparatively small figure?

      I also wonder how much bearing the final outcome of Yeung’s much-delayed trial may have.

      • Paul Carter - The Voice Of Reason says:

        Disagreements aitn a problem Jay

        Would buy you a pint anytime Blue

        • Jay Sidney says:

          Very kind but I would forego half the amount of beer I am likely to drink throughout the rest of my life in return for the news that BCFC has come through this crushing nightmare and got on an even financial footing so the sleeping giant of B9 can slowly but surely display serious signs of waking up and start to realise its potential.

  • Oby says:

    No deal before the new year then,…Hmm,….. lets see if Our Jack and our Nath are still here come the end of Jan then,..you get my drift ?

  • Jay Sidney says:

    Well done on your determined efforts to keep worried Blues fans up to date, Almajir.

    I read somewhere (sadly, I can’t recall where) that Gianni Paladini said he was satisfied with how his takeover talks were going and added that he expected to conclude something within 72 hours. That was at the beginning part of the week but who can tell for sure?

    Is there a chance Paladini could be yet gazumped, not least if the club is put into administration and one of the other erstwhile nameless bidders Colin Tattum and others have hinted at come out of the shadows and try to buy BCFC for a deal less than the £30m currently being talked about?

  • Gary says:

    Oby, if they agree a sale they’ll not be sold. Even if it drags into the New Year…because it’ll be a transition from one owner to the next and the new owners wouldn’t want that.

  • Gary says:

    Almajir – There’s a guy on facebook/BCFC Forums called “Jeffrey Au” – who the hell is this person, apparently he’s quite a popular figure? But to me he’s talking rubbish and stirring it up. He’s claiming that Pollyana CHU is the real owner of Blues and that she’s the ‘Chinese’ bidder and is buying out Carson as a favour to him? WHAT? Where’s all this coming from…Pollyana Chu has no interest in football and I can’t see her bidding 30 Million plus for the Club.

  • Keith says:

    Great work as always-you really are the best read on this and many other subjects

  • Keith says:

    Aside from some Indians whose interest has waned, my undrstanding is that there is no other interested party other than Paladini. The mystery Chinese are indeed invisible because they don’t exist and are only being touted to try to drive up the price. PP will no doubt want some reward too for brokering all this. Waiting, waiting.

  • walker says:

    what i dont understand about carson holding out for more money is if you add up all the money we have made on sales, europe, final win then carson has pocketed a good 50 mil already so he has a cheek shafting us out of even more money.

    Just to change the subject for a second i must give some praise to bcfc over the last couple of years on the admin side. they have always been very professional when I have had contact whether it being about tickets and other general information. And i visited the club shop a couple of years ago and what a diference a decent shirt sponsor makes. The shop is probably as good as it has ever been and although im not a fan of the pink kit etc the shop is bulging with decent goods for a change.

    • almajir says:


      Where on earth do you get the idea Carson has pocketed 50mil? He hasn’t pocketed a BEAN. It’s cost him tens of millions to own Blues, tens of millions he’s lost for ever.

      Before you ask “where’s the money gone” I will tell you, as I tell everyone else – the player’s pockets. Wages are what kill football clubs; we pay Zigic a minimum of 2.5mil a year alone. That has to come from somewhere.

      • Jay Sidney says:

        “Wages are what kill football clubs”? Nothing else, then? What about dodgy businessmen? For every player who is paid fantastic wages (much of which comes from “television money”), there are many more (especially in the lower divisions) who earn little more than the average wage.

        And why not ask the PFA how many players they have on their books who have no contract with any club?

        There is probably a kernel of truth in what Almajir has said but there are surely other factors, too. I am very surprised to see a serious journalist and commentator such as Daniel using such a one-sided argument.

  • Art Watson says:


    As you know I live a long way from Brum and sometimes find it very difficult to keep up with all of the related developments .

    Can you explain why some people are suggesting that Blues could go into administration please.

  • Ed says:

    My feeling is that the preferred option for PP and CY is a new Chinese owner, probably with CY retaining a minor shareholding and with PP retaining his position of CE of BCFC. The negotiation of this, is in my opinion what is holding up the take over.

  • John says:

    Despite all the talk,it’s a matter of wait and see. Peter Pannu,along with a very able staff at St. Andrews have managed to keep the club afloat,during very difficult times and I don’t think that administration,will be the result. Lets just keep supporting the manager (he aint going no where ) and the team,until we here the news that we all want to here. KRO

  • RUPERT says:

    I still smell an almighty big RAT! Something is still going on they might be trying to refinance borrow against the assetts or the property (St Andrews) or the value of players.

    These people are seriously crafty and still will be looking at ways of getting money out of the club.. I dont think we are going to be sold we might be refinanced have a new Hong Kong share issue but the same old rubbish will be pulling our strings.

    Making it look as though they are trying to sell up and inviting offers is a way of keeping critissm away.

  • Bluemaximus says:

    My worry is that fans are looking at owners who will buy buy buy! This is what got us into this mess. You cant spend beyond your means without having to look at the big fella called consequence right in the eyes. Lets get someone in, settle the boat, get the finances in order and move on. Fans have got to stop assuming real life is Championship Manager. This may take a couple of years but I myself dont want a wreckage like this at St Andrews again.

    • Oldbluenose says:

      Maximus;, I have been ” banging-on ” that same drum, myself mate, I want stability, and steady progress for our club, Building our infrastucture,!!

      Comparision to strive for is EVERTON< !!!!!!!!!.

  • Cypriotblue says:

    I was under the impression that the club was being run well at the moment. Is there any truth in the possibility of us going into administration if there is not a bid? Are we still in that much trouble after all the player sales and restricted spending?

  • Art Watson says:

    I also thought the accounts forecasted a profit for this season .

    Talk of administration is very concerning.

    Can anyone clarify what’s going on please.

    • almajir says:


      The last I heard is there won’t be a profit this season.

      Think about it. We had to sell players to get through the summer. We have no overdraft – so cashflow is absolutely king. Ticket sales are pretty much down on what was expected. I can’t see Blues going into Admin BUT I can see them selling a player or two to ease cashflow worries IF a takeover isn’t in place.

  • Letsby Avenue says:

    At the end of January Blues receive their final £8million ‘parachute payment’ (The following 2 seasons it drops by 50%)

    This money, plus gate money is the substantial part of Blues’ cashflow for the second half of the season
    Whether this budget will get us through to the summer or if we need to take an “eye-popping” offer, only those with their noses in the books can really tell us.

    We did it last year amidst an even greater “certainty” about Administration.An even greater “certainty” about a fire-sale and points deductions.

    Let’s go with common sense. Everyone at Blues are trying their best, and are suceeding I’d say.
    We’ve just had another little round of redundancies, in really peripheral areas, so in Pannu’s absence people are keeping their eyes on the ball.

    Administration. No. Early sale? I’d think not if Bates and Leeds are anything to go by.


    • almajir says:

      Whilst I do believe it’d be much more likely to see BIH fall into admin before BCFC, I think it would be incredibly naive to believe it was all well at St Andrews. If there is no takeover in place – ie the bid hasn’t been accepted by January I can see a player if not two being sold.

  • RUPERT says:

    still no reply to the offer?

  • […] Holdings via an Extraordinary General Meeting, as per Chapter 14 of the HKSE rules. As confirmed by this blog previously, this is a process that will take a period of time and is subject to various HKSE […]

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