US businessman Mr Malcolm Glazer is said to be prepared to offer £3 (€4.40) a share for Manchester United plc, valuing the company that owns soccer's richest club at €1.13 billion. Barry O'Halloran reports.
Mr Glazer, who made a preliminary approach to the company this week, yesterday contacted its biggest shareholders, Mr John Magnier and Mr JP McManus, with a view to opening talks about the sale of their 28.89 per cent holding in the company.
Sources confirmed that Mr Glazer had approached the duo, and that contact was made with them directly, rather than with their advisers.
It is understood that the US businessman is prepared to offer £3 a share for the 80 per cent of the company he does not own, putting a price tag of £780 million or €1.13 billion on the business as a whole.
This values the Irishmen's stake, held through offshore vehicle Cubic Expression, at over €325.5 million. One analyst estimated that the duo paid an average of £1.85 a share, or €200.7 million, for their holding. On this basis, if Mr Glazer's offer succeeds, Mr Magnier and Mr McManus would make a profit in the region of €125 million.
Mr Glazer holds 19.19 per cent of the club, for which he paid around €72 million or an average of £2.40 a share.
Shares in the London-quoted company closed up 1.2 per cent at £2.75 yesterday, valuing it at around £706 million. The news that contact had been made between two of the key players sparked some late buying.
Mr Glazer may not be the only person seeking a meeting with the two Irishmen. A London source confirmed last night that Mr Keith Harris, who acted for Mr Roman Abramovich in his takeover of Chelsea last year, is considering putting together an alternative deal. The source said this would involve enlisting the support of Cubic Expression and the fans, who hold up to 21 per cent of the company.
Shareholding fans could pose a major hurdle for any bidder.Under the London market's rules, shareholders controlling 90 per cent of a company's value must accept an offer before it can succeed.
Last night, Mr Sean Bones of Shareholders' United, which already has the support of 6 per cent of the company, predicted that it would have no problem getting the 10 per cent-plus needed to block an offer.
