The board of Manchester United will not recommend an £800 million (€1.17 billion) takeover bid by Malcolm Glazer but will let its shareholders decide on the offer.
United's board is locked in tense talks with Mr Glazer's advisers over the wording of its statement to shareholders; sources said the statement is expected this week.
"They're basically saying to shareholders that the price is fair and that they should be mindful of that but we can't recommend it because of the large amount of debt involved," one of the sources said.
Mr Glazer, who has had two previous bids rebuffed, has offered 300p a share in cash for United, a premium of nearly 10 per cent to its share price of 274p today.
But despite days of talks, the board has told the US tycoon it cannot recommend the offer because of 300 million pounds of debt Mr Glazer plans to load on to United's balance sheet to finance the deal.
With no recommendation, the spotlight will once again fall on United's two biggest shareholders, Irishmen John Magnier and JP McManus, who between them own nearly 30 per cent of the club.
Mr Glazer's last bid attempt collapsed after talks with the duo fell through on price. The pair have said they remain long-term investors in United, although sources have said they would sell if the price was right.
Another source familiar with the matter said today that Glazer had not yet contacted Cubic Expression, the investment vehicle of the Irishmen, about the latest bid. Media reports have said the two sides are set to meet.