Dossier warns United directors of 'takeover dangers'

MANCHESTER United's directors were yesterday sent a detailed dossier from City experts warning of the possible dangers of US tycoon Malcolm Glazer's proposed £800 million takeover.

The group Shareholders United, which represents around 20,000 small shareholders, has commissioned their own report from two City firms raising questions about the debts the club would be burdened with.

An accompanying letter to United chief executive David Gill appeals to the directors not to "sacrifice the club on the altar of profit and commerciality."

Glazer's family owns 28% of United, worth more than £200m. His latest proposal his third takeover bid would see an additional £300m borrowed from banks and a further £300m from preference shares secured against the Glazer family stake.

His previous proposal had £500m being borrowed from the banks but Shareholders United claim the preference shares are just a way of disguising further borrowing.

The letter to Gill from Shareholders United chairman Nick Towle says: "Shareholders United, our members, the majority of the fans and many independent commentators and analysts regard this new Glazer proposal to be nothing but smoke and mirrors.

The first decision Mr Gill and the board will have to make is whether to allow Mr Glazer to see United's books.

Gill has a duty to shareholders to consider all realistic offers and the 300p per share being offered by Glazer is viewed in the City as being very attractive.

The key to the whole takeover, however, remains JP McManus and John Magnier, United's largest shareholders with a 29% stake in the club.