Is the Red Bird that acquired AC Milan a "good bird"?
Red Bird Capital bought AC Milan for €1.2 billion, according to Verità & Affari, but the Elliott Hedge Fund will not leave.
Through loan-related warrants, the Elliott Hedge Fund will receive Milan shares based on the club's value growth, and they will retain three members on the new board.
Red Bird Capital will provide Milan with €300 million as liquidity, with the remainder of the acquisition going into debt, of which €600 million will come from supplier financing (Elliott Hedge Fund). The Elliott Hedge Fund provided a €600 million loan to Milan's Luxembourg-based parent company Rosenelli Sports Investments, with another €300 million.
The seller pays the buyer money, lets the buyer buy his own club, and then eats the interest.
It feels like the Elliott Hedge Fund is playing the game of "left hand to right hand" behind the scenes, and it is not the same as Brother Li's time.
This red bird doesn't feel like a "good bird."
