Magnier, McManus increase stake in United

JOHN MAGNIER and JP McManus increased their stake in Manchester United just a week after reports said they were preparing to dispose their entire holding.

A short statement from Manchester United last night said that Cubic Expressions, the Virgin Islands-registered company they own, had increased its holding in the club form 10.37% to 11.4%.

The club did not say how much they spent raising their stake or when the purchase took place.

But data from the London Stock Exchange showed 2.2 million shares changed hands yesterday, much greater than the normal volume of United shares traded, indicating a cost of under £5 million.

The two have repeatedly denied they are planning a takeover bid and said they see United as undervalued, representing a good long-term investment.

Reports late last week said the two were preparing to offload their entire stake after a disagreement with several decisions by the club's manager and their close friend Alex Ferguson.

At yesterday's closing price the stake held by Cubic is worth £47.3 million, though much of this stake was acquired at a lower price over the past 12 months.

United shares have risen by 31% this year on the back of takeover speculation.

Hectic trading is expected when dealing begins today.

United shares rose by 10% this week following British newspaper reports linking an unnamed Russian businessman with a £500 million bid for the club.

United have been on tenterhooks this year because of the frenetic movements on its share register with Dermot Desmond, Malcolm Glazier of Tampa Bay Buccaneers and Big Brother creator John de Mol all buying into the club, while hedge fund Lansdowne has also increased its stake.