Glazer Family Planning Takeover of Manchester United
Sat Jul 31, 2004 06:38 PM ET
LONDON ( Reuters) - The family of U.S. sports tycoon Malcolm Glazer is in talks with banks to raise cash for a takeover of Manchester United, the world´s richest soccer club, the Sunday Times reported.
Glazer, who owns American football team the Tampa Bay Buccaneers, has built up a stake of 50.27 million shares, or 19.17 percent of the British soccer club.
Neither the Glazer family, nor Manchester United could be reached for comment on Saturday evening.
United, which finished third in England´s premier league in the 2003-04 season, has been the subject of persistent bid speculation since its two biggest shareholders began building up their stakes in recent months.
Irish racehorse owners John Magnier and J.P. McManus own 28.9 percent, although sources close to them have told Reuters they are long-term investors rather than potential bidders.
Malcolm Glazer´s son, Joel, is leading talks with U.S. investment banks, the newspaper said, without citing sources. It said Joel Glazer had also approached Germany´s Commerzbank, which has an established relationship with the family.
Although Glazer said in March he had no plans to launch a bid for Manchester United, a source close to the situation told Reuters at that time he could still make an offer in the future.
The Sunday Times said Magnier and McManus have told associates they would be prepared to sell their 28.9 percent stake, held by their investment vehicle, Cubic Expression.
But the paper said there were doubts whether the Glazer family could raise enough cash for a full takeover.
The Glazers are also looking at increasing their stake in the club but keeping it below the 30 percent threshold, after which they would be forced to take over the whole company.
" They want to gain control of United, but want to try to do it as cheaply as possible. A 29 percent stake would be a controlling stake, but not if the Irish also have 29 percent," the newspaper quoted a source familiar with the Glazers´ plans as saying.
Shares in Manchester United closed at 253-1/2 pence on Friday, valuing the firm at around 660 million pounds ( $1.20 billion).