IIRC it was a "business partnership" which went wrong...the guy who lived next door to Daglish had various other legit businesses which were also attacked:
A pub in Litherland was burned as a warning....when that warning was ignored a number of cars on his car sales forecourt were given the molotov treatment. He opened the car sales again after about a fortnight and the same thing happened again..
Also a popular nightclub was targetted but instead of the nightclub they fragged a chinese restaurant in the same location.
The perpetrators weren't blessed with the best of brains.
Don't know the ID of the grenade in the picture, but Russian grenades are plentiful and cheap all over Europe. They probably come into UK along with the other shipments of guns, ammo, immigrants & drugs....