Glazer increases his United stake

MALCOLM GLAZER stepped up his assault on Manchester United yesterday, raising his stake to almost the same level as Irish investors John Magnier and JP McManus.

The latest share purchase by Mr Glazer brings his stake to 28.1%, just behind the 28.9% owned by Cubic Expression, the investment vehicle that holds the Irishmen's shares.

Mr Glazer has spent the past five days increasing his stake in the club at a cost of around €90 million.

Despite this fans remain hostile to him, fearing a full takeover will lead to heavy borrowings by the club to pay for the takeover and little investment in new players for manager Alex Ferguson.

The latest purchase is seen as an attempt by Mr Glazer as a renewed push to get Cubic to sell its stake. "The share buying simply demonstrates Glazer's long-term commitment to Manchester United as an investor," a spokesman for the Glazer family said.

Mr Glazer had talks with Cubic's financial advisers about getting control of their stake but those talks broke down without a deal being struck. Reports suggested the American offered 300p a share for the stake.

There are few options open to Mr Glazer if he does not get Cubic to sell. He could try to bring his stake to just over 50%, which would give him a simple majority and allow him to take executive control. However, under Takeover Panel rules he must offer all shareholders the highest price he paid for his shares (around 285p) if his stake exceeds 30%.

And there is no guarantee that they would all sell out, leaving him with a sizeable, and angry, group of minority partners.

He could also try to wait it out with Cubic and hope they will sell their holding before the share price falls back.

According to analysts the United price has risen on the takeover speculation. If the stalemate continues with no sign of a breakthrough the share price is likely to fall. However, this would hurt Mr Glazer more as he bought in at a much higher price than Cubic.

Meanwhile, a member of Britain's House of Lords, Lord Morris of Manchester, tabled a series of parliamentary questions calling on ministers to explain what they could do to prevent the club being taken over by a non-British citizen.

Lord Morris, who is a patron of Shareholders United said, if necessary, the Government should step in to block a takeover by Mr Glazer.

"That is the message from the supporters, stop this scandal. It cannot be remotely fair that one non-UK citizen can trample all over them," he said.

Shares in United ended yesterday down 0.5% at 283p, valuing the club at £752 million.