GLAZER RUMOURED TO MAKE A BID NOW

Last updated : 19 December 2004 By Editor

THE SUNDAY TELEGRAPH

Malcolm Glazer, the US sports tycoon, has told Manchester United's board that he wants to submit a new £800m offer to take over the club and that any bid would include less debt than the proposal he made earlier this autumn.

At a secret meeting last week, Glazer's representatives told David Gill, the Man Utd chief executive, that the American billionaire was prepared to submit another offer which would involve more cash and less borrowing than his previous approach. The price would be about 300p per share, the same amount as his first offer.

It is understood that Gill told the Glazer camp that the club would only negotiate with him if a formal takeover offer was put on the table. Man Utd is likely to put out a Stock Exchange statement later this week which will in effect be a demand to Glazer to "put up or shut up."

This will put Glazer in a difficult position, because it is unclear whether he can make a formal offer prior to holding talks with Man Utd.

Gill called the meeting with Glazer's representatives to ask Glazer to support the reappointment of Andy Anson, Philip Yea and Maurice Watkins, who were thrown off the board in October when Glazer used his 28 per cent stake in Man Utd to successfully oppose their re-election.

The revised takeover approach was made verbally by Glazer's representatives at the end of the session of talks.

Man Utd rejected Glazer's initial highly leveraged offer because it would have left the club heavily indebted and would have possibly involved the sale of Old Trafford, the team's stadium.

It is believed that Glazer will try to patch up his relationship with the Man Utd board before attempting to re-enlist the support of his original financial backer JP Morgan. The US investment bank had agreed to loan Glazer up to $500m, before walking away when the US sports magnate ignored its advice and opposed the re-election of the Man Utd directors.

Glazer could in theory call an EGM to try to depose Gill and his fellow directors - and they would need the support of Cubic Expressions, the investment vehicle of JP McManus and John Magnier, which owns 28 per cent of the club, to keep their jobs.

THE PEOPLE

Malcolm Glazer could be presented with a back-door route into ownership of Manchester United.

Major shareholders JP McManus and John Magnier are ready to sell their £250m stake.

The Irishmen have privately said they don't want their 29.1 per cent holding to go to Glazer.

But once McManus and Magnier sell up, the Tampa Bay Buccaneers owner would then be free to approach the new shareholders. However, having now been given the financial backing of DeutscheBank, it's thought he now is poised to return with an improved offer.

Magnier and McManus have already had talks with one potential buyer, but the deal fell through. Yet they intend to pursue the sale of the vast majority of their stake. They want £3 per share to walk away.

They want to cut ties having grown tired of unwanted publicity after Sir Alex Ferguson's threatened court battle with Magnier over champion racehorse Rock Of Gibraltar.