Old Trafford fans angry as Glazer is tipped to take over

Published on Monday 4 October 2004 00:52

AMERICAN sports tycoon Malcolm Glazer is expected to launch a full-scale takeover bid for Manchester United within weeks which could value the Premiership football giants at more than £650 million.

Glazer, who already owns 19.2 per cent of the club, is understood to have appointed investment bank JP Morgan to approach the United board with a highly leveraged offer after stalking the business for months.

But the controversial plan could also see the world’s richest football club taken off the stock market, which is likely to infuriate fans who own 18 per cent of shares between them and have harboured dreams of establishing a supporters’ trust.

Last night, an angry Oliver Houston, vice-chairman of Shareholders United, warned Glazer would be plunging himself into a ferocious battle with millions of fans if he decided to make a formal bid for the club.

"We have been gearing up for this since we saw off Rupert Murdoch with a bloody nose and aren’t prepared to take anything lying down," he said. "People feel very strongly about it. It would be an extremely brave board that would recommend a bid from someone who clearly has no interest in football."

His comments were echoed in a statement issued by Jules Spencer, chairman of the Independent Manchester United Supporters’ Association. "If Glazer wants a fight, we will give him one," he said. "We want to make it clear that he is not welcome or wanted as owner of Manchester United."

The Glazers, who own Florida-based Tampa Bay Buccaneers American football team, have been gradually snapping up shares and now control the second biggest holding in the Old Trafford outfit.

Although rumours about a takeover bid have been circulating in the City for months, it is the first time a person understood to be close to the Glazer family has actually spoken out.

Weekend reports quoted Mehmet Dalman, who is regarded as the mastermind behind Glazer’s share purchases, as saying the family wanted to have a major involvement in Manchester United.

It is believed that Glazer will have to borrow heavily against United’s assets in order to finance a bid - a move which observers believe will mean mortgaging the club’s guaranteed future income from long-term sponsorship deals. Revenue from season ticket sales and television rights could also be securitised in the same way.

Glazer is also expected to seek the support of John Magnier and JP McManus, the Irish racing tycoons whose Cubic Expression investment vehicle has the largest stake of 28.9 per cent in the business.

Supporters of the club, which drew 1-1 with Middlesbrough yesterday afternoon, had hoped the off-field uncertainty was quietening down but if the proposed deal progresses it will set the scene for a showdown at next month’s annual meeting.

As significant shareholders, representatives of the Glazer family may also request talks with chief executive David Gill, although sources close to the club insist no meetings have so far been arranged.

A spokesman for Manchester United declined to comment.

As the London markets closed on Friday evening, the share price stood at 257.25p.