US tycoon Mr Malcolm Glazer has tightened his grip on Manchester United plc by raising his stake in the company to 28.11 per cent, it emerged yesterday.
This holding leaves him breathing down the necks of the club's biggest shareholders, Mr John Magnier and Mr JP McManus, who hold a total of 28.89 per cent of the company through their vehicle, Cubic Expression.
It also moves him closer to the 30 per cent point at which London Stock Exchange rules would oblige him to make an outright bid for the whole company. However, his spokespeople have said that he is not seeking to trigger a bid in this way.
Credit Suisse First Boston (CSFB), which has been buying the shares on the Glazer Family Partnership's behalf, told the markets yesterday that its holding in the club had increased to 28.11 per cent.
CSFB said it had bought 16.6 million shares during its £45 million sterling (€64.8 million) spree on Friday. It had originally reported that it bought 15.4 million shares. That, and a further purchase of 6.06 million shares for around £17 million, brings its stake to 28.11 per cent.
Since Friday, market sources have been speculating that Mr Glazer intends to launch a bid for the company, irrespective of the fact that Cubic last week rebuffed his £3-a-share offer, which valued the club at a total of €1.14 billion.
However, the share price drifted yesterday as no further news emerged from either the company or its shareholders. The shares closed in London at 283.5 pence sterling, down 1.5p.
Some sources have said that Mr Glazer wants to increase his holding to just below the 30 per cent threshold at which he will be obliged to bid.
Because he held more than 15 per cent of the company when he started buying, market rules will not allow him to purchase more than a further 10 per cent of the company in a seven-day period. That means that he will only be able to bring his stake to just over 29 per cent by next Friday.
Mr Glazer made a preliminary approach to the Manchester United board over two weeks ago. Several days later, he also opened communication with Cubic Expression.
Mr Glazer began buying the club's shares in March of last year, and has bought them steadily since then.
Mr Magnier and Mr McManus, best-known for their involvement in bloodstock and horseracing, began building up their stake four years ago.
They have never discussed their plans, but sources close to them have always maintained they see themselves as long-term strategic investors.
More than 35,000 individuals, the majority of them fans, hold around 16 per cent of the club, enough to block any takeover bid.
