As expected, Russian billionaire Usmanov has vowed not to sell his shares to Stan Kroenke.
Dein put Arsenal into a dilemna the moment he decided to bring Arsenal to the attention of two different billionaires.
Dein thought that it was time for Arsenal to be owned by Kroenke way back in 2007 but Hill-Wood and the Board was so against it that they fired him.
In perhaps a revengeful act ( and of course to make a handsome profit) , Dein sold his shares to Usmanov in August 2007 to put the club in limbo for the past three years.
As a corporate lawyer, I have always said that you cannot have two billionaires owning your club and battling for the control of your company.
All it means is lawyers snooping about and board directors not having a clear vision of club policy.
I think that Kroenke´s move is positive for the club.
Not because I prefer him. As you are aware, I would fancy the much richer Usmanov (who is richer than Sheikh Mansour and Abrahamovic) if we had to be foreign owned.
But Kroenke has done us a favour by forcing a resolution of the situation as I am sure that the status quo would have ended in a court room.
Of course, Usmanov is not obliged to sell his shares but only decisions which require a special resolution (i.e. 75% of the shareholding) could prove problematic.
Kroenke´s ownership of 63% allows him to take most decisions which involve the day to day running of the company via an ordinary resolution.
Obviously, it is hard to see Usmanov sitting down quietly as a minority shareholder while not being invited on the Board despite holding 27% of the shares.
Expect him to make a lot of noise in the next few months. His lawyers have already questionned the agreements between Bracewell-Smith, Fizman and Kroenke.
He will also question the Board´s motives to advise the shareholders to accept a lesser figure for their shares than the amount being offered by him.
He will also question the Board´s motives to advise the shareholders to accept a lesser figure for their shares than the amount being offered by him.
Usmanov and Dein will not be accepted on the Board and this could still be a legal wrangle. But at least we need to give credit to Kroenke for initiating the moves to force a solution.
