Glazer team to discuss renewed offer for United

MALCOLM GLAZER’S advisers will sit down with Manchester United this week to thrash out a revised €1.17 billion takeover plan, analysts have said.

Mr Glazer and his two sons Joel and Avi have been putting the finishing touches on the proposed offer for the past nine weeks after the club allowed the Americans access to United’s books in early February.

“What will happen this week is a recommencement of discussions with the club about how we take the business plan forward,” said a person close to the process. The price of Mr Glazer’s bid, which values United at 440 cent a share, has not changed, other people said.

However, the capital structure - or the mix of cash and debt - has been rejigged to reflect new details that emerged after the release of United’s interim results on March 22, the people said.

A debt-free business with one of the most well- known brands globally, Manchester United is seen as vulnerable to a takeover because of its huge marketing and cash generating potential. Mr Glazer, who has had two earlier bid attempts rebuffed, will finance the latest bid by placing €440 million of debt directly on United’s books, the same level as his original plan. The debt will be secured against future cashflows of the club.

But he will now stump up more of the remaining €7.3 million himself. Mr Glazer Tampa Bay Buccaneers wants the board to recommend the bid and put it to its shareholders to vote. The board has already indicated it thinks 440c a share is a fair price but has said it is unlikely to recommend the approach because of the structure of the bid and the high levels of debt being placed onto its books.

They also fear backlash from irate United supporters who fear Mr Glazer will hike ticket prices and reduce investment in new players to pay down his debt.

The key to Mr Glazer’s success largely depends on the club’s two biggest investors, Irish racehorse magnates John Magnier and JP McManus who between them own 28.8% of the club.