was carlton house a gift or a purchase

In the autumn of 2009, Sheikh Mohammed, through his agents, made an attractive offer for the Queen’s talented but headstrong middle-distance horse Highland Glen, who had shown a reluctance to enter the stalls.
Sheikh Mohammed was buying the horse for his son Sheikh Mansoor to race in Dubai.
Warren explained that Highland Glen had caused the Queen some embarrassment when he refused to enter the starting gate in front of a massive crowd at Goodwood that year and she was apprehensive about the sale.

“Sheikh Mohammed had made a nice offer but because Highland Glen was quirky, the Queen didn’t want to accept the money. Instead, she gave the horse to Sheikh Mohammed,” Warren explained.
Then, after Highland Glen had won at Meydan soon after purchase, Sheikh Mohammed contacted Warren to offer a selection of four yearlings as his reciprocal gift to the Queen.
“He was saying thank-you, and it was a typically generous gesture on his behalf.
"He hand-picked them himself, and Carlton House was one of them. The man knows his horses,” Warren said.

Great story and explains why at first glance, I didn't see it as the sort of pedigree that the Queen would have selected. When you look deeper though, the presence of Bustino, Troy and Mill Reef in the pedigree makes him an entirely logical Derby horse.

this is a great story and in esscence what horseracing is all about, i hope it wins

"He hand-picked them himself, and Carlton House was one of them. The man knows his horses,” Warren said.

Clearly, that's why he gave away the Derby favourite.

In the end we take nothing with us - what better than to have given a gift like this; it is a prize both have pursued. I'm sure Sheikh Mohammed will gain as much satisfaction from having his gift run in the Queen's colours as it would if it were in his own.

At least we know now where he'll be standing when he retires.

Heard Sheikh Mo is genuinely tickled pink at the prospect of Carlton House winning the Derby

He generally seems just as pleased if one of his brothers' horses win as his own so I am sure that is true.

To be fair to Sheik Mo he always seems gracious in defeat and one of the first to congratulate the winning connections. I think he genuinely loves the sport.

I think he genuinely loves the sport.

I think he does too. The biggest understatement EVER, Paddy Hair.