The value of Manchester United plc, owner of soccer's richest club, surged to more than €1 billion yesterday after the company announced that it had been approached by a potential buyer.
Nobody was named officially, but reports yesterday said that US property and sports franchise millionaire Mr Malcolm Glazer, who already holds a 19.17 per cent stake in the company, was in preliminary talks with the board about a possible takeover bid.
He was said to be preparing a bid that valued the company in the region of £700 million sterling (€1.01 billion) or £2.71 a share.
That would place a price tag of £200 million on the 28.89 per cent stake held by the Irish bloodstock and horse racing tycoons, Mr John Magnier and Mr JP McManus.
Between 2001 and last year they spent about £150 million building up their stake, giving them a profit of £50 million.
They bought the shares through offshore company Cubic Expression.
Nobody has approached that company or its representatives to discuss the sale of the stake.
Manchester United closed at £2.71 (€3.88) in London last night, 4 per cent up,on the back of the news.
That values the company at £710.5 million sterling or just over €1.03 billion.
Prompted by weekend news reports that Mr Glazer was about to show his hand, the company stated yesterday morning that it had received a preliminary approach "regarding a possible offer for the company".
"This approach contains a number of significant conditions. The company is seeking clarification of this proposal and at this stage it is unclear whether any offer will be made."
The company was not prepared to go any further than that yesterday.
Mr Glazer is said to have enlisted investment bank JP Morgan as a backer. A spokesman for the bank also declined to comment yesterday. The US businessman has also appointed a London public relations firm to act for him.
The vast bulk of Mr Glazer's estimated €900 million fortune is tied up in his businesses, which include the American football team, the Tampa Bay Buccaneers. He is going to have to borrow the money needed to buy Manchester United.
Reports yesterday said that he had finance in place, and that it was secured on future ticket sales to the club's games.
In the year to the end of last July, these were the biggest contributor to its £170 million turnover.
If he does bid, he not only has to deal with Mr Magnier and Mr McManus, but also with Manchester United's army of fans.
Around 35,000 of them, many of them Irish, hold shares in the club. Supporters' clubs say that the total holding is as high as 20 per cent. This could be enough to block any offer.
Four years ago the same fans derailed BSkyB's bid for the company.
They have been making their opposition to Mr Glazer clear since he first bought a stake in the company last year.
