Man United board to allow Glazer to study its finances By Matthew Garrahan FT February 11 2005
Manchester United's board has agreed to let Malcolm Glazer carry out due diligence ahead of the US sports tycoon's likely �800m bid for the football club, according to people close to the situation. Confirmation that the club has agreed to Mr Glazer's request to study its books could come as early as today, but may be delayed until the United board is able to meet. The decision is a boost for Mr Glazer and his family, who have been stalking the club for more than a year. The Glazers have already seen one bid proposal rejected by the Man Utd board at the end of last year on the grounds that it relied too much on debt, and have had to overcome the hostility of many of the club's fans, who object to the takeover plans. Mr Glazer's latest bid has less formal debt than his previous proposal and is also believed to be considerably more detailed. However, although the likely bid price of 300p a share represents a near-10 per cent premium over yesterday's closing share price of 274p, it remains unclear whether the Man Utd board - led by Sir Roy Gardner, chairman, and David Gill, chief executive - will recommend it. The club's supporters' groups vehemently oppose a takeover and have threatened to boycott matches if Mr Glazer succeeds. Supporter hostility is likely to be a factor in the board's decision, while directors will also be seeking clarity over Mr Glazer's plans for the club. However, even if the board decides to recommend a bid, the Glazer family still may not succeed. J.P. McManus and John Magnier, the Irish horse racing millionaires who are United's largest shareholders, are not thought to be in any hurry to sell their 29 per cent stake. Mr Glazer's sons, Joel and Avi, are fronting the bid for United. The pair are keen soccer fans and gained experience in running a sports brand through their ownership of the Tampa Bay Buccaneers American football franchise. They believe United could generate more profits in the US, the world's largest sports marketing and broadcasting market, and are thought to be keen to generate more income from media rights. This may be problematic, however. The media rights of England's leading football clubs are negotiated and sold collectively, so increasing United's share may mean the club would have to strike its own deals. ------------------------ Yahoo! Groups Sponsor --------------------~--> Meet the McDonald�s� Lincoln Fry get free digital souvenirs, Web-only video and bid on the Lincoln Fry prop charity auction. http://us.click.yahoo.com/9hSKEA/fV0JAA/Y3ZIAA/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/
