So Bell & Downing are going to be 'backed' by DFO.
I believe there is some confusion on the 'Michael Dell' or 'Dell' links.
If you find yourself with a bit of money then you'll buy a 2nd home, invest in stocks etc etc to try and earn more than you would in a bank.
If you have millions then you will look to invest with people/firms to manage your money and pay them a commission. This makes sense in theory as they are professionals and while you may do well yourself, the thinking is that they will make you more.
When people have 'vast' wealth they will be able to establish something called a 'Family Office'. This means hiring those people to manage your money to exclusively work for you.
That is what DFO does for the Dell family and those outsiders who invest with them.
DFO Management - About
www.dellfamilyoffice.com
Michael Dell as you can see is mentioned but the leadership of the family office does not include him. Take Alisa for example, she is an experienced professional https://www.dellfamilyoffice.com/leadership?id=5468&dept_id=95&bioname=Alisa Mall
Why would DFO be 'backing' the takeover?
A: Not really backing but they would act as the corporate lender who would restructure the overall debts and lower the interest payments.
B: Perhaps they may have an interest in holding a minority share as they see a long term investment paying off for them.
C: They may be looking at the club as a vehicle for Dell branding (premier league club etc), a seat at the table and also more of a hands on position where they are in effect 'appointing' Bell & Downing to run the club for them.
Who knows what the reality is but i think its important to clear up that this is not Michael Dell himself.
Secondly, B + C are extremely unlikely and yet that would be the definition of 'backing' the takeover.
Most likely is they simply restructure the debt (A).
To those claiming Bell and & Downing must have amazing connections to be even in talks and supported etc
Thats simply untrue. Its not particularly difficult to have family office connections or to propose A to them as it has done by them many times before.
Lets see...if B or C i would be very impressed.
Amongst the hundreds, nay thousands of Zat messages I think these are 2 of your very best .
Insight , knowledge and good analysis.
FWIW I agree with you that option A is the most likely.
To be frank I am more than comfortable with the thought of Bell and Downing running the show with financial backing from the Dell family office.
Even if the arrangement is only one of borrowing sufficient money to complete the deal and then being able to continue to borrow on preferential terms it will give certainty , clarity and should lower our interest costs and therefore help in PSR terms.
It would be lovely to have access to the huge fortune of Dell as a shareholder but let's be frank as the rules stand we can't just go and buy who we want anyway as Newcastle are finding out.
In addition not having a third major shareholder means Bell and Downing can act with greater freedom and react quickly should they need to.
A final point is that if this is simply a borrowing exercise you can be sure from a gearing point of view that Bell and Downing will have had to put a very significant %of their own wealth into the pot . Having that much skin in the game is good. I think I recall from about 3 weeks ago that Bell had sold his shares in a company for about £50 million and remarking at the time that it was unlikely to be coincidental.
Just need Moshiri to accept the offer now.
