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American sports tycoon Malcolm Glazer is thinking of mounting a second attempt to buy Manchester United. The news came after secret talks in Florida last week between Glazer and United chief executive David Gill. For its part the club has made it clear that Glazer must 'put up or shut up', issuing a statement to the Stock Exchange that it will not open negotiations unless it receives a definitive offer from Glazer. It is thought that a second bid would include more equity and less debt to meet the United board's criticism that the first bid was too highly leveraged. In addition, the debt could be kept in a separate investment vehicle and thus away from United's balance sheet. US investment bank JPMorgan, which does not like hostile bids, could be persuaded to fund the deal again if Glazer got on better terms with the United board. Commerzbank might also become involved. Glazer borrowed £100m off them to finance his United share-buying spree and the German bank might back him again if only to protect its investment. Glazer has an incentive to restructure the debt as he is thought not to be all that liquid in terms of his assets and the loan is costing him more each year than the United shares yield in dividends. Eric Cantona is the latest person connected with United to oppose the bid, suggesting that Glazer 'should stay in America and buy Coca-Cola.' But he won't and whether he eventually succeeds in buying United depends first on the stance of the board and ultimately on the attitude of the enigmatic but commercially minded Irishmen, John Magnier and J P McManus.
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