Bahrain-based Investcorp is in exclusive talks to acquire Italy’s AC Milan from US-based hedge fund Elliott Management, local reports have said.
The Middle-Eastern provider and manager of alternative investment products is said to be eyeing a deal valued at more than €1 billion ($1.1 billion).
The Italian Serie A team is a seven-time European soccer champion, and was once owned by the country’s former Prime Minister Silvio Berlusconi.
Investcorp’s executive chair Mohammed Alardhi and co-chief executive Hazem Ben-Gacem had been in discussions in this regard with top executives of the hedge fund since April 1, a person with direct knowledge of the matter was quoted as saying by the Financial Times.
Elliott decided to enter exclusive talks with Investcorp in recent days, according to the people.
They added that the exclusivity period would end in about two weeks.
The hedge fund has been approached by several buyers in recent years but none have led to a transaction.
The current discussion could still fall apart or result in a minority stake transaction, people involved in the discussions said.
One source close to the talks told Reuters the deal was near to completion.
Meanwhile, Bloomberg reported that Abu Dhabi-based Mubadala Investment would back Investcorp’s bid.
A sale above €1 billion would mark a huge win for Elliott, which took control of AC Milan in 2018 at a fraction of that value after the club’s previous Chinese owner failed to repay debt to the hedge fund’s credit arm that it used to buy the club a year earlier, said the FT report.
