Banker to tackle United takeover

BRITISH banker Keith Harris yesterday stepped up plans to block Malcolm Glazer from acquiring Manchester United by lining up a financial backer for his bid to build a stake large enough to prevent the club’s takeover.

The Japanese bank Nomura said it is in talks with the life-long Reds fan, who is a former head of the Football League and head of merchant bank Seymour Pierce, though discussions are at an early stage.

“Nomura confirms its Asset Finance Group is in discussions with Seymour Pierce Ltd about providing finance to assist them and the supporters with a view to developing a strategy that will provide a long-term future for Manchester United that is in the best interests of the club,” a statement from the bank said yesterday.

A source said yesterday: “What the proposal is about is devising something which stops any one individual taking it over.

“That’s the real point. This is not a takeover bid.”

The confirmation followed a report in yesterday’s Financial Times that it was preparing to lend Mr Harris £200 million (€289m) so he can buy enough shares to block a takeover by any group. To do this he would need in excess of 20% of United shares, which would be enough to prevent the club being taken off the stock exchange.

Mr Glazer, who owns the Tampa Bay Buccaneers, has said he is seeking to buy United after lifting his stake to 28.1%. He was in talks to buy the 29% held by Irish investors JP McManus and John Magnier, but all communications between the two sides have collapsed.

Their support is vital if any bid were to be successful. The FT said any loans from the bank would be partly repaid with funds released from a securitisation of future ticket sales or revenue from media rights.

Mr Harris has an advantage over Mr Glazer as he was the senior adviser to Rupert Murdoch’s BSkyB its failed bid in 1999.

His plans is likely to find support amongst fans, many of whom are also the club’s shareholders. They are vehemently opposed to a takeover, either by Mr Glazer or the Irish pair.

They have had several exploration meetings with Mr Harris and are believed to be in favour of his plans.

Supporters’ groups fear that if Mr Glazer were to buy United he will have to borrow heavily to finance the bid, requiring him to use the club’s future revenues and assets as security, meaning less money for buying players.

Shares in United gained 1% yesterday. They have been flat this week as Mr Glazer has been prevented from buying any shares under London Stock Exchange Rules. It bars investors in bid situations from buying more than 10% of shares in a week. He will be allowed to buy more shares on Monday.

Some analysts expected Mr Glazer to press for further talks in the coming weeks. The present stalemate will also certainly lead to a fall in United’s shares.