TAKEOVER TALK

Manchester United's directors were forced to accept yesterday that a takeover bid for Britain's biggest football club has become a firm possibility as another 1% of the company changed hands, sending the shares up almost 8%. The price has risen 20% in less than two weeks and more than doubled since the start of the year.

Yesterday's main buyer has yet to reveal itself but market makers suggested it is Cubic Expression, the investment vehicle of wealthy Irishmen John Magnier and JP McManus. If so, Cubic's holding is likely to edge over 12%.

The Manchester United board, which has been trying to dampen takeover speculation, has been told by its City advisers that the heightened market activity increases the chances of a bid, even if no move is imminent. Chief executive David Gill, who last week dismissed takeover talk as "speculation", declined to comment yesterday as the shares rose 17p to 235p.

The Takeover Panel, which polices mergers and acquisitions, is understood to be monitoring the stake-building. Six months ago, the panel extracted formal assurances from Cubic and Irish financier Dermot Desmond, who has 1.5% of the equity, that they were not acting in concert. It may now ask for similar pledges from Cubic and Mr Glazer. The panel declined to comment last night but is thought not to have found any direct connections between the two.

Leading stakeholders in Manchester United:

JP McManus and John Magnier: 11.4%

BSkyB: 10%

Harry Dobson: 6.5%

Malcolm Glazer: 5.9%

Lansdowne: 5.2%

John de Mol: 3.5%

Legal & General: 3%

Dermot Desmond: 1.5%