Writer: Mikey Delap
Date:Monday August 30 2010
A Bahrain investment company run by potential new Rovers owner Ahsan Ali Syed, has been told to cease trading by Bahrain's government.
It has fallen foul of strict laws in Bahrain on how to run companies as it there has been evidence suggesting the company has been acting on behalf of an external investor. Something which is prohibited by Bahrain business law.
The big news for Rovers fans is that this company does not directly affect Syed's attempts to buy Blackburn Rovers.
It will however ask some serious questions about the man himself and his practices.
BBC Sport is reporting in full - 'A company run by the man linked to the proposed £300m takeover of Blackburn Rovers has been told to cease trading.
Bahrain's trade and industry ministry said it closed a Bahrain-based company after it violated regulations by operating outside its remit.
BBC 5 live has learned the company is Western Gulf Advisory, run by Indian investor Ahsan Ali Syed.
Western Gulf Advisory said the Blackburn bid is being managed by a separate company, and is unaffected.
The precise details of the offence are unclear, but it is understood that Western Gulf Advisory fell foul of Bahrain's central bank, which refused to sanction its activities.
It has been reported that Mr Syed is planning to invest £300m into Blackburn Rovers, pledging an additional £100m to fund transfers.
Mr Syed also runs a Swiss-based company, Western Gulf Advisory AG, based in Zug.
The BBC has been told it is this Swiss entity which is managing the takeover plans, and not the Bahrain-based company.
Mr Syed's personal wealth has been reported to be between £3bn and £8bn. He said he would be investing his personal wealth into the club, through his Swiss firm, and he would be the sole investor.
The takeover bid is being negotiated by Western Gulf AG's European investment team, which is currently involved in the creation of a new Europe-based firm, WGA Sports, which will oversee all Mr Syed's sports investments.
According to its company website, Western Gulf Advisory provides services relating to asset and wealth management and Mr Syed's family has been involved in private sector lending across Asia for 150 years.
Despite his reported wealth, little is known about Mr Syed, and he has not featured in the Forbes Rich List.
Mr Syed claims he and his company are experts in buying under-performing companies and turning them into profitable enterprises.
He is known to be involved in other takeover bids of companies outside of football, including the Irish construction company McCabe and the Australian cotton producer, Cubbie Station.
However, when probed about his other investments when talking to the BBC last week, Mr Syed said he preferred to keep such information private to protect his investors. Western Gulf Advisory claims to act as financial adviser to sovereign wealth, royalty and many wealthy individuals.
A spokesman for the Barclays Premier League said they had not received any formal notification regarding a takeover of Blackburn Rovers, and would not conduct any investigation into the suitability of any potential investor until such a time.
Once notice of a takeover is received the Premier League then has 10 days to carry out a means and abilities test of the company planning the investment, which includes the owners and directors.
It is only after such tests have been completed that a decision on whether to sanction a takeover will be made.
A spokesperson for Mr Syed said negotiations with Blackburn Rovers' advisors were proceeding very well, and Western Gulf Advisory AG would soon be approaching the Premier League to complete the necessary paperwork.
Blackburn Rovers did not respond to a request for a comment on the development.'
Date:Monday August 30 2010
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