AC Milan on the verge of Chinese takeover

Rome - Online retail giant Alibaba is on the verge of leading a Chinese takeover of AC Milan from disgraced former prime minister Silvio Berlusconi, Italian media reported Wednesday.

Company supremo Jack Ma was recently in Italy and was wined and dined by Prime Minister Matteo Renzi at the VinItaly trade fair, where the Italian leader notably observed "the future of Italy and Alibaba are intimately entwined."

Ma is already the joint owner of Chinese club Guangzhou and, with an estimated personal fortune of $29 billion, would have no difficulty financing a deal.

Media tycoon Berlusconi turns 80 later this year and has been looking to offload a stake in the club he has owned since 1986 since early 2014, shortly after his definitive conviction for tax fraud.

He had priced the seven-times European champions at around €1 billion.

But negotiations aimed at selling a minority stake to a consortium led by Thai businessman Bee Taechaubol on the basis of that valuation appear to have broken down, leaving the field clear for the Chinese.

According to Wednesday's reports, the would-be bidders are offering €400 million for a 70 percent stake and Berlusconi's holding company Fininvest is taking it seriously.

A general meeting of shareholders is scheduled for Thursday afternoon and Berlusconi is expected to give them an indication of his intentions.

With Milan having missed out again on Champions League football for next season, there is mounting speculation that Berlusconi is preparing to cut his losses.

The club is estimated to have lost €91 million in the 2014-15 season and has reported debts of around €250 million.