Man United shares rise on Glazer’s €1bn takeover talk

Shares of Manchester United rose more than 4% yesterday after US financier Malcolm Glazer told the world’s richest football club he was planning an £800 million (€1.16 billion) takeover offer.

Glazer, who has had two previous offers for the club rebuffed, met United chief executive David Gill last week in Tampa, Florida, a source familiar with the situation said on Sunday.

The billionaire owner of the Tampa Bay Buccaneers American football team, said the new offer would consist of more cash and less debt than his previous proposal, the source said.

The board of United had previously said it would not back an offer that left the football club deeply in debt.

A spokesman for Manchester United declined to comment while no one was immediately available to comment on Glazer’s behalf.

Glazer’s fresh attempt to win control of United, currently lying fourth in the Premiership, comes a month after his bankers resigned when the US tycoon used his 28% stake in United to oust three of its board members during the club’s annual general meeting.

Glazer had made the strike in retribution for the board not giving him access to the club’s books as part of his 300 pence a share takeover approach.

Regardless of whether United backs Glazer’s bid this time round, the American will still need the support of the club’s two key Irish shareholders, horseracing magnates JP McManus and John Magnier, who between them own nearly 29% of United.

It was the failure to get McManus and Magnier on board that led to Glazer’s last bid attempt falling apart, causing United to end the takeover talks.

A spokesman for Cubic Expression, the investment vehicle of McManus and Magnier, was not available.

Another question mark is who Glazer will approach to back his bid.

Reports yesterday said the financier had teamed up with Germany’s Commerzbank, which he has been close to in the past.

Other sources, however, said the American could be back in talks with JP

Morgan.

Although the US investment bank walked away from Glazer when he voted down United’s board members, a source close to the matter said at the time it would consider working with him again if he could get back on friendly terms with United.

Meanwhile, United is unable to use the powers of Britain’s Takeover Panel to issue a “put up or shut up” ultimatum until such time as Glazer has actually made a fresh approach.

United shares closed up 4.32% at 277.5 pence on the London Stock Exchange where the stock was among the leading gainers.