U.S. billionaire Malcolm Glazer came within a whisker of gaining full control of British soccer heroes Manchester United on Friday, raising his stake to 74.81 percent and laying out details of his 790 million ($1.5 billion) bid.
A source close to the Glazers said they would hit the key 75 percent threshold on Monday, after which Glazer will have full control of the 127-year-old club and delist Manchester United Plc shares from the stock market.
The U.S. tycoon, owner of the Tampa Bay Buccaneers American football team, started the day owning just over 70 percent of the soccer club nicknamed the Red Devils but his advisers moved quickly, snapping up shares by striking deals with other investors.
His move brings to an end a bitter, two-year takeover battle and sparked the fury of thousands of United fans who have ferociously rejected the American's advances.
"We will do everything we can to get rid of him," Sean Bones, vice-chairman of Shareholders United, said, as he urged fellow supporters to boycott United matches and merchandise.
But analysts said there was little they could do.
"I think it's game over," said Richard Hunter, head of UK equities at private client stockbroker Hargreaves Lansdown in London. "I'm sure he'll be sailing past 75 percent very shortly," he added.
Under the takeover terms, Glazer will offer to buy the shares in United that he does not already own for 300 pence a share.
"We are delighted to make this offer to acquire one of the pre-eminent football clubs in the world. We are long-term sports investors and avid Manchester United fans," Joel Glazer, a son of Malcolm Glazer and a leading player in the acquisition, said in a statement.
The Glazers also detailed their financing plans, confirming that 265 million pounds of debt will be piled onto United's books and that the club will be taken private as soon as possible.
"Our intention is to work with the current management, players and fans to ensure Manchester United continues to develop and achieve even greater success," Glazer added.
The board of Manchester United, which had said it could not recommend Glazer's bid, said it noted the Glazers' announcement, which was made through their acquisition vehicle, Red Football.
"During recent discussions with Red the board sought a range of protections for the football club, its fans and any minority shareholders who wish to remain invested in Manchester United," it said, adding that it would advise shareholders what to do once the full offer details were available.
SEIZED CONTROL
The Glazers seized control of United on Thursday by buying a 28.7 percent stake from the club's biggest shareholder, Cubic, an investment vehicle for Irish racehorse magnates John Magnier and J.P. McManus.
That elevated their stake to 56.9 percent and, under UK takeover rules, kicked off a mandatory offer for the remaining shares.
But furious fans have vowed to fight on, saying Glazer has no knowledge of football and plans to cream the profits off the club to pay back the debts used to buy it.
In a statement on the Shareholders United fan site, members urged fans to buy as many shares as possible in a bid to cut off Glazer in his tracks.
The fans say they own about 18 percent among them, but analysts put the figure somewhere between 10 and 15 percent.
"The only opposition he seems to be getting at the moment is the very high-profile fan base, but they've certainly got nothing like the 25 percent they need," Hargreaves Lansdown's Hunter said.
A one hundred strong gang of Manchester United supporters stormed a party hosted by JP Morgan late on Thursday in protest at the U.S. bank's support for Glazer's takeover. No one was hurt.
Manchester United manager Alex Ferguson cancelled a scheduled news conference for the club's final league match of the season against Southampton. Ferguson, manager since 1986, has yet to comment officially on Glazer's successful takeover.
© 2024 Rediff.com -