Spurs takeover called off as US investors baulk at valuation
Cain Hoy announces that it has 'terminated' its interest in Tottenham Hotspur and will not make an offer
Spurs progressed to the fourth round of the League Cup after coming from behind to beat Championship leaders Nottingham Forest last night, but off the field intrigue continues at White Hart Lane after US private investment company Cain Hoy announced that it had abandoned plans for a takeover of the Premier League club.
Owner Joe Lewis and chairman Daniel Levy had denied they were in talks to sell the club, "insisting their dialogue with Cain Hoy centred solely around the prospect of investment for their new stadium", according to the Daily Mail.
But in a statement to the London Stock Exchange, the US firm said it had been in "the preliminary stages of assessing a cash offer" for Spurs, but had "subsequently terminated its assessment and accordingly is no longer considering making an offer for Tottenham Hotspur".
City AM claims the company "made an unsuccessful cash offer of around £400m for the football club earlier this month", which was rejected by the owners, who value the club at between £500m and £600m. It adds that a deal also involving the purchase of the club's proposed new stadium would have bumped the price up to around £1bn.
The two parties were "miles apart" in their valuation of the club, says Goal.com, and the US firm also harboured concerns over Spurs's plans to move ground.
"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," claims the website.
Earlier this month Spurs revealed that a legal dispute over land near the site of the proposed new stadium meant the club would have to find an alternative home for the 2017-18 season.
It is unclear where Spurs will play their games during that season, with West Ham likely to veto a move to the Olympic stadium, leaving the Lilywhites eyeing ground shares with MK Dons or Brighton.