Glazer would consider hostile bid
“If the bid is rejected, he could take the offer straight to shareholders,” one of the sources said, although he stressed Glazer’s aim was to get a recommendation from United’s board.
Mr Glazer has told United’s board he is prepared to pay 300 pence in cash to buy the 15-times British soccer champion, but the two sides are locked in talks and are yet to agree a deal, the source said.
The US tycoon’s advisers are set to meet with United’s camp on Thursday as part of ongoing negotiations, the sources said.
Mr Glazer has had two previous bid attempts rebuffed.
“There are discussions today, and there will be meetings this week and probably more next week,” another said.
“The indicative proposal remains on the table, and we are in discussions about certain changes,” one of the sources said.
The key sticking point is the capital structure of the bid and the amount of debt Mr Glazer plans to load on to the company’s books to fund the acquisition, the sources said.
Under the plan, Mr Glazer would transfer about £300 million of debt to debt-free United and finance the remaining £500 million through his own money and bank loans.
The board has said it will not approve a takeover that leaves United heavily indebted, although it acknowledges that 300p a share would be a fair price. Mr Glazer, who owns the Tampa Bay Buccaneers American football team, wants the board to recommend the bid and put it to its shareholders to decide.
A board recommendation is key because it could make United’s two biggest shareholders vote in favour of a deal, one of the sources said. Irish racehorse magnates John Magnier and JP McManus own 28.8% of the club, and without their backing Mr Glazer’s takeover cannot proceed.
The board’s agreement might also help to win over irate fans, who oppose Mr Glazer’s approaches because they fear he will hike ticket prices and cut investment to pay back his debt.
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