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Private equity investor in takeover talks at AC Milan

Asset manager Investcorp is in exclusive talks to acquire AC Milan from US hedge fund Elliott Management, reports the Financial Times.    The deal could value the Serie A team at more than €1 billion.

Elliott took control of AC Milan in 2012 at a fraction of that sum after the previous Chinese owner failed to pay back debt to the hedge fund's credit arm.   Before that it had been owned by former Italian prime minister and media tycoon Silvio Berlusconi

AC Milan is back in the Champions League and is currently top of Serie A.  It has not won the title since 2011 and repeatedly failed to qualify for the Champions League.

Investcorp is a Gulf-based private equity investor with a wide range of assets including real estate, hedge funds and private debt.   It has stakes in luxury brands Gucci and Tiffany.   The group intends to consolidate its position in the top level of European football.

Globalisation is far from over in football, even if China and Russia are no longer active.  Football assets remain attractive, even though they are a high risk investment with uncertain returns.

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