Manchester United shares fall as Glazer bid plans remain unclear

MANCHESTER United shares fell 2.5% yesterday as pressure mounted on potential bidder Malcolm Glazer to disclose his plans for the club.

Mr Glazer, who had been attempting to mount a £800 million (€1.2 billion) bid for United, last week used his 28.1% stake to vote off three board members at its annual general meeting.

The club is believed to be prepared to ask the British takeover panel to compel Mr Glazer to either make a bid or walk away.

The uncertainty over Mr Glazer’s plans saw the shares drop 7p to 279p yesterday.

The 76-year-old’s move to oust board members forced the resignation of his financial backers JP Morgan and his public relations company Brunswick.

According to some sources, the American businessman may attempt to mount a hostile bid for the club if he can find a new financial backer. Sources in London said the loss of JP Morgan should not be too much of a setback as Mr Glazer is well-connected. They also suggested he could call an extraordinary general meeting to get a look at Manchester United’s financial accounts.

Any bid by Mr Glazer will hinge on the support of Cubic Expression - the offshore vehicle owned by John Magnier and JP McManus that holds a 28.9% stake in the club.

“Cubic Expression and Glazer between them will determine the future of Man United... there will be no successful takeover of United without the agreement of those two parties,” Dr Bill Gerard, professor of sports management at Leeds University Business School, said yesterday.

They rejected one offer of 300p a share from Glazer because too many conditions were attached to it.

Cubic sources told the Irish Examiner last night that they remain long-term investors in the club.

It is not known whether Cubic will agree to meet United’s chairman Roy Gardner for talks about the club’s future. The club is seeking support for a plan to bring “stability” to its structure, widely assumed to involve the setting up of a trust to block hostile bids.