Millionaire cools talk of bidding war for United

THE prospect of a bidding war erupting for Manchester United was downplayed yesterday with the man identified as a potential suitor urging caution about a takeover.

Keith Harris, a life-long United fan and millionaire banker, said yesterday that it was "a little bit premature" to be talking about making a rival bid for the club.

United have already received one approach, believed to be from its second largest shareholder Malcolm Glazer, and reports yesterday linked Mr Harris to the club.

However, he told the BBC it was too early to say he was interested in launching a counter-bid. He said he would favour the stock exchange listed club going private to ensure profits were diverted to develop the team rather than shareholders.

Many ordinary fans - who own 18% of the club shares - have come out strongly against Mr Glazer and other wealthy foreigners taking over the club. The fans are trying to organise a protest to prevent Mr Glazer taking control.

They fear that the American, who owns 19.2% of United shares, cannot afford to buy the club outright and will borrow heavily against its assets to finance an offer, meaning money to buy players will be diverted to repaying banks.

The key to the takeover being successful will be whether they can muster a block of 20% of the shares to vote down any bid. Though Mr Glazer could take control of the board with 50% plus one of the shares, to take sold ownership he would need 80% or more. He will also need the support of Irishmen John Magnier and JP McManus, who hold a 29% stake. The Glazer and Irish camps have issued conflicting noises about whether the two sides have been in contact.

United shares, up 10% this week, closed down 0.5% yesterday at 271p.

Meanwhile Newcastle United, who are mid-table in the Premier League, yesterday said annual operating profit dropped by £3.3 million for the year ending July 31, falling from £11.6m to £8.3m.

The company added that turnover fell £6.2m to £90.2m after the team failed to qualify for the Champions League, which contributed to an £8m drop in TV revenue to £33.7m.

Earlier this week, Spurs reported widening losses for its financial year.