US financier Malcolm Glazer would consider making a hostile bid for Britain's Manchester United if talks over a friendly £800 million ($1.5 billion) approach fall through, a source said today.
"If the bid is rejected, he could take the offer straight to shareholders," one of the sources said, although he stressed Mr Glazer's aim was to get a recommendation from United's board.
Mr Glazer has told United's board he is prepared to pay 300p in cash to buy the club but the two sides are locked in talks and are yet to agree a deal, the source said.
The US tycoon's advisers are set to meet with United today as part of negotiations, the sources said. Mr Glazer has had two previous bid attempts rebuffed.
The key sticking point is the capital structure of the bid and the amount of debt Mr Glazer plans to load on to the company's books to fund the acquisition, the sources said.
Under the plan, Mr Glazer would transfer about £300 million of debt to debt-free United and finance the remaining £500 million through his own money and bank loans.
The board has said it will not approve a takeover that leaves United heavily indebted, although it acknowledges that 300p a share would be a fair price.
Mr Glazer, who owns the Tampa Bay Buccaneers American football team, wants the board to recommend the bid and put it to its shareholders to decide. A board recommendation is key because it could make United's two biggest shareholders vote in favour of a deal, one of the sources said.
Irish racehorse magnates John Magnier and JP McManus own 28.8 per cent of the club, and without their backing Mr Glazer's takeover cannot proceed.
The board's agreement might also help to win round irate fans, who oppose Mr Glazer's approaches because they fear he will increase ticket prices and cut investment to pay back his debt.