Whyte flies in for Gers talks

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    Board members to meet with prospective new owner

    Last updated: 31st March 2011   Subscribe to RSS Feed

    Craig Whyte has arrived in Glasgow to meet with members of the Rangers board for discussions over a possible takeover.

    Lloyds Banking Group claimed on Wednesday that they were satisfied with the Scottish businessman’s plans for addressing the defending Scottish champions’ debt, which is expected to be around the £20million mark – down from June’s figure of £27million – when figures are released on Friday morning.

    Whyte’s bid to become the new owner of the Ibrox club now appears to be gathering pace after he flew in for fresh talks.

    Whyte will outline his plans to board members including Rangers chairman Alastair Johnston, who travelled to the UK on Thursday from his base in the United States to deliver the club’s financial results.

    The meeting is thought to be a courtesy call rather than crucial to the outcome of Whyte’s bid but it is the first time some of the board members have met the London-based tycoon.

    Whyte has been attempting to purchase the Glasgow club since November and the only remaining hurdle is to conclude terms with current owner Sir David Murray.

    In the balance

    Given that the debt at the Ibrox club appears to have been reduced by around £7million, Whyte will have to pay less than the original figure of around £33million.

    If all goes well for Whyte, he will take over 75 per cent of Murray’s shareholding, with London-based property developer Andrew Ellis becoming a 25% partner.

    The takeover appeared to be hanging in the balance earlier in the week after reports suggested the bank’s demands for an ‘exit payment’ of more than £1million was a stumbling block.

    However, Lloyds responded by denying the existence of any exit or redemption fee.

    Whyte, who made his money as a venture capitalist, confirmed in a statement to the stock exchange back in November that he was considering making an offer for Rangers and was in talks with Murray International Holdings.

    If he succeeds with his buyout of the club, a sum of around £25million could be made available over five years for investment in team development.

    Manager Walter Smith, who will quit the Scottish champions at the end of the season and will be replaced by his assistant Ally McCoist, met with Whyte for the first time earlier this month.

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    Whyte flies in for Gers talks