U.S. tycoon dismisses Man Utd talk
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Manchester United's Old Trafford football grounds: Could it be changing hands?
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LONDON, England (Reuters) -- U.S. sports tycoon Malcolm Glazer sought on Monday to dampen speculation that he was preparing a takeover offer for English soccer champions Manchester United, denying he had hired a bank to give him bid advice.
Glazer, owner of American football team the Tampa Bay Buccaneers and a 16.3 percent shareholder in Manchester United, was reported widely last week to have hired Commerzbank to advise him on a possible bid for the club.
"Contrary to press speculation no financial adviser has as yet been appointed in connection with its investment in Manchester United,'' Glazer said in a statement, referring to the holding by his Malcolm I. Glazer Family Partnership.
However, sources close to the matter said Glazer had held talks with Commerzbank over a potential bid, though he had not yet signed an official engagement letter, and some analysts said they thought he was still likely to make a bid.
"I think it's still quite likely that Malcolm Glazer will bid for Manchester United,'' said Tony Craze, a stockbroker with tonycraze.com who advises some small investors in Manchester United, adding that if Glazer was preparing a bid it would be in his interest to dampen the recent rise in the club's share price.
By 0935 GMT on Monday Manchester United shares, which have doubled in the past year, partly on persistent bid speculation, were down 2.95 percent at 271-1/4 pence, valuing the 15-times English champions at nearly £720 million ($1.4 billion). Earlier, the shares touched a low of 268-1/4p.
A winning bid for the club would probably have to reach about 350p per share, or 928 million pounds, Tony Craze said.
Options open
Seventy-five-year-old Glazer, who graduated from the family watch-parts business to become the 244th richest man in the United States, said he was keeping his options open over his Manchester United stake, which he raised just last week.
"As with any investment, it (the family partnership) is considering its possible options, which may include increasing its shareholding or decreasing its shareholding in Manchester United,'' he said in his statement to the London stock market.
"It could also include a possible offer for or a possible sale of its shareholding in Manchester United.''
Glazer said he was an enthusiastic supporter of the 125-year-old club with "great admiration for Manchester United's rich history, loyal fans, great players, outstanding managers, winning tradition and for investment purposes.''
One of the keys to any takeover battle will be the club's biggest investors, Irish race horse owners John Magnier and J.P. McManus, who last week raised their stake to 28.9 percent, near the 30 percent level at which they would be obliged by UK law to
make a full takeover offer.
Sources close to Magnier and McManus, who have questioned the club's player transfer policy, have declined to say whether they might be drawn into a bid.
A profitable, debt-free business with one of the best-known brands in the world, Manchester United is prized by investors for its marketing potential. According to former Chief Executive Peter Kenyon, the club has 50 million fans across the world.
But supporters are wary of a takeover, which they fear could turn a historic club into a personal fiefdom and reduce the influence of ordinary fans.
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Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
