DUBAI (Reuters):

Dubai International Capital (DIC) are moving closer to a possible takeover of English Premier League club Liverpool, a communications official for the group said yesterday.

The state-owned investment agency, which owns the Tussauds Group, operator of London's famous waxworks, surfaced as likely investors in the 18-times English champions in December.

DIC chief executive Sameer al-Ansari is a lifelong Liverpool fan who has led other Dubai acquisitions, including last year's purchase of a $1 billion stake in DaimlerChrysler.

Ansari, 44, an Arab of Palestinian origin who was educated in England, uses the Liverpool emblem as a screensaver on his mobile phone.

"We are in the process of formulating an offer," the communications official at the agency told Reuters in Dubai on Sunday.

"We are still doing the due diligence," added the official, who did not want to be identified. The official declined to give further details.

British newspapers have valued a takeover at about 450 million pounds ($870 million).

Earlier, Liverpool chief executive Rick Parry told BBC Radio that talks were in their final stages.

"It is a case of finalising the due diligence and pulling everything together, which we hope will be completed relatively quickly," Parry said.

"A huge amount of work has been going on... I imagine we'll have something to say relatively soon on that.

"It is looking positive and yes, I am confident."

Parry also said Liverpool could add to their squad in the January transfer window after they were knocked out of both the FA and League Cups on their home ground by Arsenal.