Cain Hoy ready to pull plug on Tottenham takeover bid

Spurs chairman Daniel Levy and the private investment company are said to be miles apart in their valuation of the club, and there are serious doubts a formal offer is forthcoming
By Greg Stobart

The US private investment company that declared its interest in buying Tottenham is close to walking away from the potential takeover, Goal has learned.

It is understood that only a bid of around £1 billion would tempt Tottenham's owners into a sale, a figure that has put Cain Hoy off a potential approach with sources suggesting there is "almost no chance" of a formal bid now being made before the October 10 deadline.

The company, backed by billionaire American investors, is also understood to hold doubts over Tottenham’s ability to finance their proposed 56,000-seat new stadium amid difficulties in securing a naming rights partner.

As Goal revealed earlier this month, there have been doubts at Tottenham since Cain Hoy's rather sudden public declaration that they were looking at buying the club about the seriousness of any such bid.

TOTTENHAM LATEST
And it is understood that now, London-born Jonathan Goldstein, who is Cain Hoy’s European head of investments, believes the two parties are miles apart in their valuation of the club.

Goldstein was told that any conversations over a takeover had to be held with Daniel Levy rather than Joe Lewis, Tottenham’s ultimate owner who is believed to be more inclined towards selling the club.

Lewis is the majority shareholder of ENIC, which holds a controlling 85 per cent stake, but has been happy to delegate to Levy since Cain Hoy’s statement earlier this month expressing its interest in buying the White Hart Lane club.

Cain Hoy’s backers include Todd Boehly, part of the consortium that bought the LA Dodgers baseball team, and president of billionaire investment fund Guggenheim Capital.

Yet despite their interest, Cain Hoy look set to pull the plug on talks to buy Tottenham. In accordance with the City Code on Takeovers and Mergers, it has until October 10 to confirm its interest with a formal bid or withdraw it.

Tottenham issued two statements earlier this month to deny that ENIC are looking to sell up, but the Londoners have been hit by delays over the proposed new stadium adjacent to White Hart Lane.

Spurs have confirmed that a high court challenge from a local business means it is "highly unlikely" they will move into the new stadium on schedule and will likely spend the 2017-18 season playing away from White Hart Lane.

In the meantime, Levy is continuing in his attempts to secure the funding - through sponsorship and financing - to build the £400m project that is considered vital to Tottenham’s chances of competing both domestically and in Europe.

Earlier this month, Tottenham said in a statement: "Tottenham Hotspur FC has been in discussions with multiple providers of finance so that the optimum financing package for the project can be achieved and, in the course of those considerations, has met representatives of Cain Hoy.

"However, there are no ongoing discussions with Cain Hoy. The club is focused on the new stadium development and the season ahead."