Manchester United were last night on the verge of becoming the world's first Stg £1 billion football club.

Shares in the European champions' company climbed almost 15 per cent to 376p on the London stock market yesterday, valuing the club at £978 million.

The rise was sparked by a research note from Warburg Dillon Read stating its belief that United shares could actually be worth 500p - a price that would give the club a market value of some £1.3 billion.