Speculation about a takeover bid at the world's biggest football club, Manchester United, has intensified with Irish businessmen Mr JP McManus and Mr John Magnier becoming the club's largest shareholders.
A company owned by the two racing figures, the Virgin Islands-registered Cubic Expression Company, now holds 10.37 per cent of the shares, up from 8.6 per cent. The next largest shareholder is Mr Rupert Murdoch's BSkyB, which owns 9.9 per cent.
Neither Mr McManus nor Mr Magnier were available for comment last night.
The purchase of the shares has prompted fresh speculation about the two men teaming up with other shareholders, including Mr Dermot Desmond, and mounting a takeover bid.
Mr McManus has insisted over the past three years that Cubic's shareholding is purely an investment but the increased buying of stock in recent weeks has convinced many in the market that a takeover bid, possibly with the co-operation of team manager Sir Alex Ferguson, is on the cards.
Manchester United shares have risen by more than 12 per cent in the past week, although they were down by more than 2 per cent yesterday at 128p sterling. The announcement concerning Mr Magnier and Mr McManus was made after the close of trading.
Club secretary Mr David Beswitherick told The Irish Times that Cubic representatives had been in touch with the club but only to inform it about the increased shareholding. He declined to comment on the likelihood of a bid.
Apart from Mr Desmond, who is believed to have a 1.5 per cent stake, another associate of Mr Magnier and Mr McManus, Mr Harry Dobson, is a prominent shareholder in the club with a 6.5 per cent stake.
Mr Malcolm Glazer, who owns American football team the Tampa Bay Buccaneers, has recently bought a 5.3 per cent stake.
There are few other large shareholders in the club, although the directors have almost 3 per cent.
The club's share price fell sharply during the second half of 2002 but has been rising since the start of this year, mainly on the back of takeover rumours.
Cubic is not obliged to bid for the whole company unless its stake exceeds 29.9 per cent.
The club was worth about £1 billion sterling (€1.5 billion) about three years ago, but its market capitalisation is now about £300 million.
