United shares hit high

Manchester United's shares hit their highest price this year when they broke the €4 barrier in trading on the London market yesterday, as speculation grew that its key shareholders would accept US millionaire Mr Malcolm Glazer's offer for the club.

The shares closed up over 3 per cent at 280.5 pence (€4.07). The price valued the company that owns soccer's richest club at £729 million or just over €1 billion.

The closing price was the highest this year. Observers said yesterday the increased price indicated that the market believed the company's biggest shareholders, Mr John Magnier and Mr JP McManus, would accept Mr Glazer's £3 a-share offer for their 28.89 per cent stake.

The US businessman established contact with the Irish racing and bloodstock millionaires late last week.

A £3 offer would value the Irishmen's stake, held through their company Cubic Expression, at over €325 million, and earn its owners a profit estimated at around €125 million. Analysts estimate that they paid an average of £1.85 a-share, or €200 million-plus, for the 28.89 per cent holding.

A £3 a-share offer would put a price tag of almost €780 million, or €1.13 billion on the company.

The US businessman, who owns the Tampa Bay Buccaneers, made a preliminary approach to the company itself last week. Some reports suggested yesterday that the board would make a statement this week. However, a spokesman refused to comment on this yesterday.

Mr Glazer holds 19.17 per cent of the company. He has enlisted the support of US investment bank JP Morgan Chase in his quest to buy the remaining 80 per cent.

It is thought that he will have to borrow heavily to finance this. Fans fear that he will use match ticket sales, the club's biggest source of cash, to repay this loan. They argue that this will result in more expensive tickets and leave less money to pay for players.

Shareholder fans have already begun organising, and one group says it will have little difficulty getting the 10 per cent shareholder support it needs to block a takeover bid.