Glazer ups Man Utd share to 16%

FRENETIC trading in Manchester United shares continued yesterday with US billionaire Malcolm Glazer raising his share in the club to just over 16%.

The move comes a day after Irish pair John Magnier and JP McManus cemented their position as the club’s largest shareholders by raising their stake to 28.89%.

Mr Glazer paid €20 million for the 2.06% increase in his stake and will add to the feverish speculation that the club will be taken over.

He is the second-largest shareholder in United after Cubic Expression, the Virgin-Island registered company which holds the shares owned by the Irishmen.

Sources close to Cubic have played down speculation that they want to take over the club, but Dr Bill Gerrard, a sports business expert at Leeds University Business School says it is only a matter of time before the Irish take control of the club and its affairs by taking seats on the board. He believes the increase by Cubic is not motivated by the row between United manager Alex Ferguson and Mr Magnier over the stud fees from Rock of Gibraltar.

“I would not subscribe to the view that this is a vendetta and a tit-for-tat strategy in response to what is going on with Rock of Gibraltar. I think there is a growing disillusionment of Magnier and McManus with regard to how Man U conducts its business,” said Dr Gerrard. “They clearly are the most powerful shareholders in Manchester United ... nothing is happening without the sanction of Magnier and McManus. Anyone who is going to take it over is going to have to do business with them.

“They could launch a full takeover bid or could look to install several of their own nominees on the board, but they are pretty well committed to getting much more actively involved and bringing about radical change in the way it does business. Whether or not that will involve a full takeover ... I think we are clearly much closer to the point where that might occur, given the size of the stake they have built up. I would be very, very surprised if it did not lead to a takeover bid,” Dr Gerrard told the Irish Examiner yesterday.

Dr Gerrard said, if Cubic seeks two or three places on the board, United is likely to ramp up its commercial activities, as Cubic will not be happy with the level of profitability and will seek a significant return on its investment, which at this stage is close to €200m.