Barry O'Halloran
Manchester United plc yesterday dismissed reports that Irish stud farm millionaire Mr John Magnier was about to get a seat on its board.
The reports coincided with an announcement that Cubic Expression, the offshore vehicle controlled by Mr Magnier and Mr JP McManus, had raised its stake in the company to 25.49 per cent from 24.24 per cent. Cubic bought 3.26 million shares in the company that owns the world's most profitable football club on Friday. Their closing price on the day of £2.55 valued the stake at £8.3 million (€12 million).
The purchase means Mr Magnier and Mr McManus own 66.5 million shares in the company. Last night, this stake was worth close to €245 million. They are the largest shareholders in the company, more than 11 per cent ahead of the next biggest stakeholder, American businessman Mr Malcolm Glazer, who controls 14.31 per cent.
The British media carried reports yesterday that Mr Magnier, owner of Coolmore Stud, Fethard, Co Tipperary, had sought a seat on Man United plc's board. A company spokesman said yesterday, however, that "none of our shareholders has sought a position on the board".
In the wake of the company's a.g.m. last November, its chairman, Sir Roy Gardner, told The Irish Times that neither Mr Magnier nor Mr McManus had expressed any interest in getting representation on the board. He described them at the time as "investors for value".
The spokesman did not rule out the possibility of Sir Roy intervening in the legal dispute between Man United's manager, Sir Alex Ferguson, and Mr Magnier, over the ownership of champion racehorse, Rock of Gibraltar.
One report at the weekend indicated that Sir Roy was trying to broker a deal between the two men.
The spokesman said he had not made any attempt to approach either man on the subject. He added that if it were to happen, Sir Roy would first consult the company's board.
The horse is based at Coolmore and could turn over €7 million a year at stud. He ran in Sir Alex's colours, and the football manager is claiming a half share in the stallion and his stud profits. He began High Court proceedings against Mr Magnier in November. The stud farm owner says the deal entitles Sir Alex to the value of one nomination fee (the amount charged each time he is mated to a mare) a year. This is currently worth €65,000.
