Old Trafford at risk as Glazer takes control with hedge fund backing

MANCHESTER United fans will wave the white flag within minutes of the start of trading on the London Stock Exchange this morning, when American billionaire Malcolm Glazer takes his stake in the football club above the 75% threshold.

Mr Glazer, whose bid to snap up shares in Manchester United plc is being supported by three American hedge funds that are buying shares on his behalf, owned 74.8% of the company at the close of business on Friday. This left him needing to spend just €2 million more to have enough votes to take the company off the stock exchange and give him effective control.

Mr Glazer is expected to press on with his buying programme, however, to take his stake to the 90% level that would be enough to trigger an automatic buyout. The sale of a key 28% block of shares by Irish businessmen John Magnier and JP McManus last week marked the beginning of the end of the process that will see United join Mr Glazer's investment empire, which includes the Tampa Bay Buccaneers, an American football outfit.

Mr Glazer has had United in his sights for over two years and first took a stake in March 2003. But supporters groups remained defiant last night as they urged fans to boycott club merchandise as a final weapon to turn Mr Glazer away from the boardroom at Old Trafford, the club's home ground.

The Glazer bid, which values the club at €1.15 billion, relies heavily on bank debt that will be secured on the club's assets - including its stadium, and trademark rights that guarantee merchandise sales.

But the financing deal means Old Trafford could be sold if the club fails to generate revenue to pay interest on the €800m debt.