|
Following this week's 'put up or shut up' warning by the Takeover Panel to Malcom Glazer, Manchester United fans group Shareholders United was reported to have written to two of the largest investors in the football club and offered to buy their shareholdings. The group is able to do this because they are being backed by a big bank, believed to be Nomura. The letters have gone to Cubic Expression, the investment vehicle of Irish racing tycoons John Magnier and JP McManus, with a 29 per cent stake, and Scottish mining magnate Harry Dobson who owns 6 per cent. However, it was subsequently denied that the fan group could afford to buy the stake belonging to the Irish racing tycoons, although they may offer to buy a small part. Shareholders United currently controls about 2 per cent of United's equity but wants to increase its stake above 10 per cent which, along with individual fan shareholdings, would stop Glazer from buying the club outright. Under the plan drawn up with Nomura, the 30,000 individual shareholders will receive a letter asking if they would be willing to join a leveraged investment trust aimed at creating a collective bloc of equity in the hands of shareholder-supporters. United shares would be exchanged for trust units. Nomura is prepared to lend on a £1-for-£1 basis, meaning that for every £1 of United shares or cash committed to the trust, the bank would offer finance to double it. The dividend paid to United shareholders would be used to pay off the money lent to the trust by Nomura. The Takeover Panel told Glazer to stop time wasting on Thursday. The match board that was held up showed that the American sports tycoon had 19 days left to get the ball in the net. He has to make a formal bid by 17 May or wait another six months. He is expected to put in a bid, but it is unlikely to be supported by the club's board given the level of debt that remains in his plan. Another blow for Glazer has been the news that Chelsea does not favour a breakaway European 'super league', an idea at one time floated by a media consortium with fundung from JPMorgan, the bank now backing Glazer. Without Chelsea, the league is a non-starter, as is a breakaway from the Premiership's collective selling agreement that would enable Glazer to maximise media revenue.
|
