US tycoon’s bid secures control of Man United

A £790 million takeover bid has given control of Manchester United to US sports tycoon Malcolm Glazer.

Glazer’s stockholding company Red Football Limited has secured the 28.7% stake held by Cubic Expression Company Limited which represents the interests of Irish tycoons JP MacManus and John Magnier. The bid will give Mr Glazer a 56.9% share of the top premiership football club.

The deal, which has been lodged just days before a deadline on bids, has left many Reds fans fearing that it could mean higher ticket prices for games.

The Board of Manchester United said that it noted the announcement by Red Football Limited and that they have purchased the Manchester United shares belonging to holding company Cubic Expression. According to their announcement, Red Football Limited now owns 56.9% of the club’s shares.

It is expected that Red Football will announce further details of the deal shortly.

The Board of Manchester United said that it was awaiting the formal terms of the Red Football offer and a further announcement and the club’s Board will reviewed that announcement.

A formal bid placed by Glazer in October was rejected as was a follow-up bid which was viewed by the Club’s Board as “too aggressive”.

Some board members view the bid and Mr Glazer’s plans for the club as disadvantageous. Man United Chief Executive David Gill went as far as describing the plan as “potentially damaging”.

However, the 300 pence share offer from Red Football will be viewed as attractive to shareholders.

The offer by Glazer, who owns the Tampa Bay Buccaneers, has left fans feeling let down as the business plan for Manchester United will entail increased merchandising in the US and worries over higher ticket prices at home.

Minority shareholders in Man United, fan-based Shareholders United, which owns 17% of the club will be attempting to gain support from at least 25% of the club’s shareholders in a bid to block the deal's progress.

If Mr Glazer secures a 75% stake plus one share, he could transfer his debt into the club, entailing Man United's delisted from the stock exchange.

A 90% stake plus one share would mean Mr Glazer could mop up the remaining 10% of shares under compulsory purchase rules.

(SP/MB)