Doubts about United valuation

Morgan Stanley will not participate in a Manchester United IPO in the US because the Glazers are seeking a valuation that the bank does not think is realistic.   The Glazers have £2bn in mind, but a group of wealthy fans who tried to buy the club for £1bn in 2010 argued that it was worth far less.

Morgan Stanley will not participate in a Manchester United IPO in the US because the Glazers are seeking a valuation that the bank does not think is realistic.   The Glazers have £2bn in mind, but a group of wealthy fans who tried to buy the club for £1bn in 2010 argued that it was worth far less.

It now looks as if the offering in the US will be led by mid-sized New York-based investment bank Jefferies, although Credit Suisse and JPMorgan are poised to take part.   However, with the US market for IPOs effectively shut since Facebook’s troubled debut last month, a large offering faces challenges.

There has been speculation that the Glazers might seek to sell a smaller stake than the one-third originally envisaged, raising $500m in the US rather than $1bn.