McManus and Magnier raise their stake in Red Devils

IRISH horse-racing tycoons JP McManus and John Magnier have strengthened their financial grip on Manchester United by increasing their stake in the Premiership champions to 11.4%.

The move comes less than a week after reports that the Irish duo were preparing to offload their massive stake in the club.

McManus and Magnier’s Cubic Expression company has bolstered its £40m (10.37%) stake and now holds 29.6 million shares in the Old Trafford club.

Satellite TV company BSkyB - controlled by Rupert Murdoch - holds a 9.9% stake in Manchester United, while Scottish mining millionaire Harry Dobson owns 6.54%.

United refused to divulge the amount spent by McManus and Magnier but share activity yesterday would suggest around £5m. The club confirmed to the Stock Exchange: “Manchester United has today been informed that The Cubic Expression Company has increased its holding in the company and now holds 29,612,396 ordinary shares representing approximately 11.4% of the issued share capital of the company.”

A source close to the pair said: “They have been notable by their silence since all the speculation about selling arose. What better way to quash the rumours than to buy more shares?”

Last week, United’s shares fell nearly 4% after a newspaper report that the two Irish businessmen, close associates of team manager Alex Ferguson, might sell their stake.

Their alleged discontent was on the basis that Ferguson had spent too much on £30m England defender Rio Ferdinand from Leeds.

While this is unlikely, it is believed that the relationship between Ferguson and the Irish pair - formed through their mutual interest in racing - is not as strong as it once was.

Reports that a mystery Russian bidder was looking to mount a takeover bid has pushed the United shares to over 160p - their highest in a year. Since, the shares have risen some 10% on reports of interest from former Football League chairman Keith

Harris, and speculation that another Russian billionaire was examining a bid after Roman Abramovich took over rivals Chelsea last week.

A number of high-profile investors have bought stakes in United in recent months to spark the takeover talk, including Dutch media tycoon John de Mol and Malcolm Glazier, owner of Super Bowl winners Tampa Bay Buccaneers. At yesterday’s closing price, the Cubic stake was worth over £47m, though much of this stake was acquired at a lower price over the past 12 months.