LIVERPOOL, England (AP):

LIVERPOOL CO-OWNERS Tom Hicks and George Gillett Jr rejected Dubai International Capital's (DIC) bid for the Premier League club yesterday, The Associated Press (AP) has learned.

The £400 million (US$800 million) offer for the English club was turned down, a person involved with the negotiations told the AP. He spoke on condition of anonymity because of the sensitivity of the situation.

Hicks "turned down their offer immediately upon receipt", the person said, adding the Texan is still willing to allow Gillett to sell 49 per cent of his stake as long as Hicks gets the other one per cent.

The Hicks camp doesn't believe DIC will be successful in buying the 49 per cent - reflecting DIC's insistence that its bid is reliant on being the majority stakeholder.

Hicks and Gillett have the power to block the other from selling.

"They (DIC) want control but they can't get it," the person said.

Gillett, whose relationship with Hicks has reportedly broken down, believes the private-equity investment arm of the Dubai government underestimated the value of his 50 per cent stake. He was "low balled", the person said.

Acceptance time frame

DIC has given the Americans 24 hours to accept its offer, an executive working on the bid told the AP.

Gillett has been in close contact with DIC in recent weeks after deciding to end his troubled spell at Anfield. Hicks, however, has said he is committed to retaining his share of Liverpool. The Texan is also looking into buying all or part of Gillett's equal stake by raising private equity.

The DIC bid emerged after chief executive Sameer al-Ansari said on Monday that Hicks and Gillett had "come out of dreamland" over the worth of the Premier League club.

Hicks revealed in January that he had spoken to DIC about a "10 to 15 per cent participation" but that his valuation was deemed to be too high.

Since then, however, Hicks has said he is committed to retaining his share of Liverpool and told the AP that he anticipates taking a "more active role" with the 18-time English champions.

JP Morgan Chase and Comapany has been tasked with raising funds by trying to attract market interest in new shares in the Hicks Sports Group, which includes his United States sports franchises.

Interest on placements

Uncertainty in the global markets prevented the investment bankers in January from attracting interest in a private placement. But they have been back at Anfield in recent weeks to update the figures to facilitate Hicks raising the funds to take sole control of the club.

Hicks and Gillett bought Liverpool for £218.9 million (then US$431 million; €333 million) in March 2007. This included an agreement to pay off about £45 million (then US$89 million; €68 million) of debt and a pledge to build and finance a new stadium.

Gillett and Hicks refinanced their Liverpool deal with a £350 million (then US$682 million; €470 million) package from two banks on January 25. But the package left the club with a debt of £105 million (then US$205 million; €141 million).

Liverpool fans originally embraced the American owners but then turned on them after their public feud with popular manager Rafa Benitez over transfers, leading to demonstrations outside and inside Anfield.