Manchester United shares fell sharply yesterday on fears that US businessman Mr Malcolm Glazer was set to sell his stake, reports Barry O'Halloran

The price dropped 4.75p or 1.69 per cent in London to close at 276.25p last night. The fall followed reports that Mr Glazer was on the verge of off-loading his 28.11 per cent holding in the company.

During the day, the shares dipped as low as 268p yesterday morning before clawing their way steadily back up in late afternoon trading.

His bid to buy the world's richest soccer franchise stalled two weeks ago after his bank, JP Morgan Chase, walked away from the transaction.

The bank's move came directly after Mr Glazer used his clout to prevent the election of three directors to the company's board at the football club's annual general meeting.

Speculation about Mr Glazer's next move has been rife since then, with some sources suggesting that he would find alternative financing and continue his pursuit of the company.

However, reports yesterday, quoting an executive close to the Glazer camp, said there was a 50-50 chance that the US tycoon would sell up and walk away.

Brokers estimate that his company, the Glazer Family Partnership, paid an average of £2.40 a share for the 19.1 per cent he built up in the company between 2003 and earlier this year.

But in mid-October, he forked out £52 million (€74.2 million) for a further 10 per cent stake in the company. That brought the average paid per share close to £2.50.

He mopped up the shares after the board and the company's biggest shareholders, Irish bloodstock and racing magnates Mr John Magnier and Mr JP McManus, rebuffed his £3 a-share offer for the entire capital of Manchester United.