Glazer makes take over bid at United

[keemanan]

Just heard he's close to buying Magners and McManuss' shares and would own over 56% if he does

A bad day for united fans indeed , should be interesting

[keemanan]

http://news.bbc.co.uk/1/hi/business/4540939.stm

US sports tycoon Malcolm Glazer has launched a £790m formal takeover bid for Manchester United.


The American has secured the 28.7% stake of Irish racing tycoons JP MacManus and John Magnier, giving him a 59% stake in the Premiership club.

Red Football Ltd, acting on behalf of Mr Glazer, said the Irishmen had sold their stakes for 300p a share.

The bid comes five days ahead of the 17 May deadline for which Mr Glazer had to make known whether he planned to bid. More soon.

[daikoku]

Keema do you know how much stake Glazer needs to hold to have total control? I'd have thought it was anything above 50% of the club but the guy I work beside says he needs more than the 59%. Anyone know for sure?

[crowie]

Mr Glazer is now 18% short of the 75% of shares he needs for the offer to go unconditional.

If he gets 75% plus one share, United could be delisted from the stock exchange and Mr Glazer could transfer his debt onto the club.

If he can get to 90% plus one share, he can make a compulsory purchase and scoop up the other 10% of the club's shares.

Fom BBC.

[Keith]

Looks like the beggining of the end

I dread to think what Ralphie must be plotting at PL

[daikoku]

Cheers for that Crowie, I wonder where he'll get the other 16% from?

I'd like to think he'd be beneficial for the club, but from what I've heard things don't sound too good. Glazer definitely ain't no Abramovich.

[crowie]

Some more from BBC

Supporters are concerned about the level of debt involved in Glazer's bid and fear for the club's future.

Oliver Houston, also a member of Shareholders United, told BBC Radio Five Live that Glazer is "no Roman Abramovich".

He said: "He's not turning up with a suitcase full of his own cash.

"He is, in effect, asking Manchester United fans to pay for his takeover, to pay for increased ticket prices and increased merchandising."

Shareholders United, which represents 17% of the club's stockholders, still hopes to prevent Glazer reaching the 75% level of shares he needs to make his offer unconditional - and essentially own the club.

And from Reuters

LONDON (Reuters) - U.S. sports tycoon Malcolm Glazer won control of Manchester United (MNU.L: Quote, Profile, Research) on Thursday, clinching a deal to buy out the English soccer club's biggest shareholder and launching an offer to mop up the remaining shares.

Red Football Ltd, acting on behalf of Glazer, said it had agreed to buy a 28.7 percent stake in United from Cubic Expression, the investment vehicle of Irish race horse magnates John Magnier and J.P. McManus, for 300 pence a share.

As a result of the deal, Glazer, who already holds 28.1 percent, will own 56.9 percent of the world's richest soccer club and under takeover rules must bid for the rest.

The bid of 300 pence per share values the soccer club at 790 million pounds, and will give the Irish duo an estimated profit of 70 million pounds from their investment.

"Glazer is in the driving seat, although he's had to go a bit hostile without the board's approval," said Richard Bullas, a fund manager at Rensburg Investment Management. Rensburg holds some Manchester United shares in its small-cap fund.

Shares in Manchester United had jumped 12.8 percent to 299p by 1422 GMT.

Glazer said his stake purchase from the Irish investors' vehicle Cubic Expression had been settled, and therefore when the offer is formally made it will be unconditional.

The 127-year-old football club said in a statement it was awaiting the formal terms of the offer and would make a further announcement when its board has reviewed the offer.

Last month, United said the Glazer approach was fair and reasonable but that it did not believe the offer was in the best interests of the club because of the high level of debt in the bid and therefore could not recommend it.

Glazer, the owner of American football team the Tampa Bay Buccaneers, and his sons Avi and Joel plan to heap up to 300 million pounds of debt on to the club's balance sheet, and raise the remainder of the cash themselves.

The 15-times English soccer league champions, home to star players Wayne Rooney and Ruud van Nistelrooy, is debt free and has argued that it needs this flexibility because failure to qualify for the European Champions League would wipe out its annual pre-tax profits.

[daikoku]

Well if Glazer now owns 59% and the supporters have 17%, then it's basically a race for the remaining 24%. If the supporters can get a hold of another 9% then Glazer's dead in the water.

Somehow I doubt Glazer will fail.

[MickeyPaul]

I apologise for my ignorance, but what exactly are the fears of Man Utd fans? I know nothing of this Glazer or his ways. You're away to tell me to go read up eh? I'm genuinely interested though. And no harm in getting a few posts in.

[crowie]

Mickey,

Haven't followed it that closely to be honest but the part from Reuters above is one of their main objections I believe.

Glazer, the owner of American football team the Tampa Bay Buccaneers, and his sons Avi and Joel plan to heap up to 300 million pounds of debt on to the club's balance sheet, and raise the remainder of the cash themselves.

They don't actually have enough cash to take over Man Utd! They have some but as mentioned above, they are going to stick £300m of debt on the clubs balance sheet. That has to have some impact on share performance, ability to buy future big names and so on. Its probably easier going to your bank and saying "Give us £25m for Rooney" when your debt free than when your £300m in debt.

The 15-times English soccer league champions, home to star players Wayne Rooney and Ruud van Nistelrooy, is debt free and has argued that it needs this flexibility because failure to qualify for the European Champions League would wipe out its annual pre-tax profits.

[MickeyPaul]

Sorry Crowie, I DID actually look through the thread and have no idea how I missed that. Honest.

[daikoku]

Apart from what Crowie said, Glazer has a history of pretty underhand business tactics. He bought a sports franchise in America (can't remember which sport), and told the local council if they didn't pay for the new stadium he'd shift the franchise to another city. There are other examples but I can't remember them of the top of my head.

[MickeyPaul]

I remember seeing pictures of Glazer and he reminded me of Jonathan King for some reason. I'm gonna go compare.......








Ehhmm..... uncanny huh?

[daikoku]

A bit like a slimmed down John McCririck n'est pas?

[GETT1NLOTS]

According to the BBC he now owns 62% of Manchester Utd.

http://news.bbc.co.uk/sport1/hi/foot...td/4541093.stm

I have posted extensively on the subject before. Football is big business now. Manchester Utd have used their financial clout to bully other clubs in the transfer market for years. Now they are seen as an exciting aquisition by a mad yank because of the same prominent financial standing that they have used to their benefit in the past.

You simply cant have it both ways.

I feel sorry for Man Utd fans who genuinely love the club but voting with their feet wont hurt Glazer . Man Utd is so big that even if 20,000 didn't renew their season tickets a different 20,000 would take thier place.

Ho hum.

Imagine what it is like to support Forest instead.