CITY WATCHDOGS PROBE UNITED

Last updated : 15 June 2003 By Editor

The Telegraph can reveal that the Financial Services Authority (FSA), the regulatory body, is examining whether the club should have made the news public through the Stock Exchange because the information could have affected the share price.

Manchester United's share price rose after the announcement of the deal was made at 3.32pm on Tuesday through the Press Association, the national news agency. It closed at 158p, up 7p on the day. The £30 million bid for Beckham, who flew into Heathrow yesterday afternoon with his wife Victoria following a promotional tour of America, is substantial even for a club as wealthy as Manchester United.

The FSA is responsible for ensuring quoted companies, such as United, inform the stock market properly about events that can influence their share price. To prevent insider trading and market manipulation, all investors are supposed to receive "price sensitive" news at the the same time.

The Telegraph understands that the FSA is concerned that news of the Beckham deal should have been made to the Stock Exchange last Monday at 7am. Instead the club first mentioned unspecified offers for Beckham the previous Saturday in an announcement on its website.