Thursday, May 12, 2005

[manchester-united] Digest Number 362

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There is 1 message in this issue.

Topics in this digest:

1. Is this the End !
From: "Stuart Sharp" <>


Message: 1
Date: Thu, 12 May 2005 14:18:32 -0000
From: "Stuart Sharp" <>
Subject: Is this the End !

Malcolm Glazer has formally launched a £790.3m takeover bid for
Manchester United (LSE: MNU.L - news) after winning the support of
its biggest investors.His Red Football bid vehicle said he will pay
300p a share to acquire the 28.7% stake held by Irish racing tycoons
JP McManus and John Magnier.The deal means the US sports tycoon has
control of the club with a 56.9% stake.
Mr Glazer needs more than 75% of shares for his offer to go forward
unconditionally. Under UK business takeover rules he must now make a
formal bid for the rest of United.
The Old Trafford club's share price rose 13% after the latest news
was announced. It comes as the team prepares to face Arsenal in the
FA Cup Final in Cardiff on May 21. Manchester United issued a
statement saying it was waiting for formal terms of the offer from Mr
Glazer to be published. It said: "A further announcement will be made
once the board has reviewed that announcement." The United board had
earlier rejected Mr Glazer's takeover proposals, saying it felt they
were "aggressive". As a result, the Takeover Panel set a deadline of
next Tuesday for him to make a firm bid. Members of the board did
agree that some shareholders might think the offer was a good one.
"The board recognises, however, that the price of 300p per share is a
fair one and may be attractive to some," it said. Opponents of the
deal - in particular the club's supporters - believe it will create
too much debt. They say that the club is currently debt-free and
should be kept that way - Mr Glazer's proposal is believed to involve
around £300m in bank loans. The tycoon owns the Tampa Bay Buccaneers
gridiron franchise and is thought to be keen on marketing the
Manchester United brand more aggressively in the US. Richard Hunter,
of Hargreaves Lansdown stockbrokers, said: "I think it's pretty much
game over now. "The key to all this was always going to surround what
the Irish duo would do with their stake."


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