US businessman Mr Malcolm Glazer followed his stalled bid to buy Manchester United by snapping up almost 16 million of its shares yesterday, driving the price to £2.85 (€4.12). Barry O'Halloran reports.
By close of business, Mr Glazer had spent around £45 million to increase his 19.17 per cent holding in the company to 25.5 per cent. Credit Suisse First Boston (CSFB) bought 15.8 million shares on his behalf in late afternoon trade.
CSFB's swoop drove the shares up by 21p on the day to £2.85, their highest level this year. The increase brought relief to investors who saw the price of their shares slide to £2.64 after talks about a possible bid for the company between Mr Glazer and its biggest shareholders, Mr John Magnier and Mr JP McManus, collapsed on Thursday.
City of London sources said that, through the Glazer Family Partnership, Mr Glazer is seeking to become Manchester United's biggest shareholder.
Yesterday's move fuelled speculation that he had not given up on a bid. Dealers said that CSFB was seeking just over 10 per cent, or 26 million shares, for the US billionaire.
The sources said that he intended to buy 29.9 per cent, the upper limit of what he can purchase without making an outright bid for the company. That would leave him with a marginally larger holding than the 28.89 per cent owned by Mr Magnier and Mr McManus.
A spokeswoman for Mr Glazer told The Irish Times yesterday that he was not seeking to trigger anything, implying that he would keep his holding below the 30 per cent level at which he would be forced to make an offer for the entire company.
If he succeeds in buying 29.9 per cent, it will mean that around 65 per cent of the company will be in the hands of four people, Mr Glazer, the Irish duo and Scottish mining magnate Mr Harry Dobson.
According to Manchester United's annual report, more than 35,000 individuals, mainly fans, hold 16 per cent of the club.
Last week, Mr Glazer approached the company's board with an indicative offer, and subsequently contacted Mr Magnier and Mr McManus. He was prepared to offer £3 a share, about €1.14 billion, for the company.
However, preliminary discussions collapsed this week after the Irishmen informed Mr Glazer's advisers, US investment bank JP Morgan, that they were no longer interested in discussing his offer.
