Sunday Times:
The directors of Manchester United will this week demand an emergency meeting with Malcolm Glazer, head of the Florida family that is stalking the world-famous football club.
On Friday Glazer, who owns 28.1% of the club, voted against the re-election of three of United’s directors at a stormy annual meeting held at the club’s Old Trafford ground.
United said Glazer had threatened to vote against them if he was not given access to its books. Glazer, who owns the Tampa Bay Buccaneers American football club, wants to run due diligence on the club ahead of making an offer.
As a result of opposition from Glazer and his family, Philip Yea, chief executive of 3i, and Maurice Watkins, the club’s legal adviser, failed to win reappointment as non-executive directors. Andy Anson, United’s commercial director, was also voted off the board.
The move led Glazer’s bank, JP Morgan, his public-relations adviser, Brunswick and law firm Allen & Overy to resign. JP Morgan had warned Glazer it did not want to be part of a hostile bid and both advisers had counselled the Glazers to abstain in the vote.
A source close to United said: "The current position is untenable. We can’t run a business like this. The situ-ation has got to be sorted out."
The source said David Gill, United’s chief executive, would press for full and frank discussions with all the shareholders. Gill is also expected to seek help from the Takeover Panel to clarify the club’s situation. "There could be scope for a partnership deal, a peace deal, but it doesn’t look great right now," said the source.
After a year of stalking, the Glazers made their first formal approach to United’s board in September. United broke off talks with Glazer in October. Gill described Glazer’s take-over plans as "overly leveraged" and said they would plunge the team into debt.
Under the Glazer proposals, most of the money loaned for the takeover would have been repaid by taking on debt. It is likely this would be paid off via a securitisation of future ticket sales. The Glazers are believed to have been angered by United’s refusal to discuss their proposals. JP Morgan was set to provide much of the money for the takeover. The Glazers will now have to try to find other backers, but will remain the second-largest shareholders in the club behind Irish horse-racing millionaires John Magnier and JP McManus, who own 29% of United.
The Glazers have attempted to buy out the Irish duo. But talks broke down because there were too many conditions attached to the Glazers’ proposed 300p-a-share offer. The conditions included the Glazers’ need to secure 75% of acceptances from United’s shareholders for the move to go ahead.
Sources close to the Glazers have claimed that talks have started again, but the Irish have denied that there are any active negotiations.
On Friday, United said it was of "critical importance" that the Glazers clarified their intentions, saying it would take "all steps available to ensure that clarification takes place as quickly as possible".
United’s fans have vociferously protested against a Glazer takeover and are attempting to build up a 25%-plus shareholding in the club that would make such a deal impossible.
On Friday United shares closed down 1½p at 285½p, valuing the club at £749m.