Tycoon launches Man United takeover bid
(Agencies)
Updated: 2005-05-13 09:23

American businessman Malcolm Glazer launched a formal ￡790,3-million takeover bid for Manchester United on Thursday after raising his stake to nearly 57% in the world's richest soccer club.

Glazer, owner of the National Football League's Tampa Bay Buccaneers, bought the 28,7% share held by Irish racehorse owners JP McManus and John Magnier. He previously held a 28,1% stake.

While Glazer has a majority stake, he needs more than 75% of shares to take complete control. At this level, he could make the club a private company. The club was first listed on the London Stock Exchange in 1991.

He will now make an offer for the remaining shares.

Thursday's move came two weeks after the Manchester United board said it would not recommend Glazer's takeover proposals to investors because his business plan appeared "aggressive" and involved too much debt.

Glazer had been given a May 17 deadline to submit a formal plan or withdraw his attempts to buy the team.

Glazer's first two proposals were rejected by the board, which said the package relied too heavily on borrowed money.

In a statement, the club said: "The board awaits the formal terms of the Red Offer and a further announcement will be made once the board has reviewed that announcement."

Financial analysts said Glazer seems certain to succeed in buying the team.

"The stake held by the Irishmen was always going to be the key to the bid," said Roy Kaitcer of Manchester stockbrokers Brewin Dolphin Securities. "He obviously has a great platform to start his bid.

"Once other shareholders see what has happened, they will say they better take that as well. It looks like Mr Glazer is on his way to owning Manchester United."

There is strong opposition to a Glazer takeover from the fan-based group Shareholders United. Fans fear Glazer will raise ticket prices and sell the 67 000-seat Old Trafford stadium.

"I'm giving up my season ticket," said Shareholders United president Nick Towle. "I'm not putting a penny of my money into this guy's pocket.

"I'm very sad. It's a really sad day for Manchester United, for the supporters, for the whole club and I think it's a sad day for football in general."

Shareholders United represents 17% of the club's stockholders, a number estimated at 20 000. Towle said at least half -- and maybe all -- will give up their tickets and stop attending games.

He said Shareholders United still hopes to block Glazer from reaching the 75% level.

"If we can get to that 25% of the remaining shareholders, that would be great," Towle said. "But it's looking like an uphill battle for us."

Manchester United dominated English soccer for more than a decade, winning eight titles in 11 seasons and four FA Cups in 10.

But the Red Devils are now only third-best in the Premier League for the third time in four years.

With a game left, Manchester United are 20 points behind champion Chelsea and six behind runners-up Arsenal. Glazer's move came just before Man U's May 21 FA Cup final against Arsenal, their only chance for a trophy this season.

Close

Mavericks beat Suns 108-106 Arsenal crush Everton 7-0 Shandong Luneng into last eight of AFC Champions League

Today's Top News     Top Sports News
Hu, Soong join hands for Straits peace         Beijing offers Taiwan more conveniences         China and Japan seek to smooth relations         Power cuts to cast shadow over summer         Report: China auto sales hit record high         Foreigners encouraged to seek S&T partners	China cruise to third Sudirman Cup sweep       Figo move to J-League reported       Ronaldo pitches up for Middle East peace       Goal line technology will be ready for World Cup -Blatter       Pearce confirmed as Manchester City manager       Mavericks edge out the Suns 108-106