Board set to block Glazer's plans for United takeover Denis Campbell Sunday October 24, 2004 The Observer
Malcolm Glazer's attempt to buy Manchester United is in danger of collapsing because senior figures at Old Trafford fear a takeover would mean the club spending less than usual on signing players. United directors are concerned that if the American businessman takes control, he will have to spend most or all of the club's profits paying interest on the �400million loan he needs for his planned �800m takeover. While the seven directors are legally obliged to seriously consider any formal bid for the club, all the indications are that several are either lukewarm towards Glazer or hostile. They fear he would put up ticket prices, alienate fans and use club funds to repay debts. That could scupper Glazer and his sons' desire to own United because, crucially, they are understood to need the unanimous approval of the entire plc board, headed by chairman Roy Gardner, before being able to access the �400m in loans that their bank, JP Morgan, is arranging. The club have told the Stock Exchange that if Glazer mounts a formal offer they will examine not just whether it would enrich shareholders but, unusually, 'the potential financial terms, possible financial structure and any impact these considerations may have on the future operation of the football club'. Glazer has another problem in the shape of United's biggest shareholders, John Magnier and JP McManus, who between them own 28.9 per cent of shares compared with Glazer's 28.1 per cent. They have already rejected Glazer's offer of �3 a share and do not plan to reopen negotiations. The American accepts that without buying their stake, he has no chance of accumulating the 90 per cent he needs to get outright control and take United private Glazer's mounting difficulties will cheer fans as they prepare for United's crucial match against Arsenal this afternoon. The disquiet in the boardroom echoes concerns already voiced by supporters groups. Another obstacle presented itself to Glazer last night when a leaked document, purportedly drawn up by some of his advisers, warned that JP Morgan would not release the �400m unless the United board recommends Glazer's ownership. That is unlikely. 'It is worth noting,' says the document, 'that JP Morgan historically would never finance a hostile UK takeover, so any transaction involving JP Morgan would need to be recommended by the MUFC board.' If Glazer is forced to abandon his plan, he could maintain his shareholding in case another wealthy individual or company attempts a takeover. Yahoo! Groups Links ------------------------ Yahoo! Groups Sponsor --------------------~--> $9.95 domain names from Yahoo!. Register anything. http://us.click.yahoo.com/J8kdrA/y20IAA/yQLSAA/GtUolB/TM --------------------------------------------------------------------~-> Please use [EMAIL PROTECTED] for general discussion. To unsubscribe send a blank message (from the email account in question) to: [EMAIL PROTECTED] Join as a full member of IMUSA today: http://www.imusa.org/join.htm Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/imusa/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
