Malcolm Glazer, the US sports tycoon, made a formal unconditional offer of 300p for all outstanding shares in Manchester United yesterday, valuing the club at £790.3 million (€1,158.7 million), after his bid vehicle, Red Football had already secured 71.8 per cent of the Premiership club.
The Glazer family secured the 29 per cent stake of JP McManus and John Magnier, the Irish horse racing millionaires, on Thursday and subsequently bought a further 14.9 per cent on the market, Red said in a statement.
By last night, Mr Glazer had control of 74.8 per cent of the club. Joel Glazer, the son who has been the driving force behind the family's pursuit of a deal for the world's richest sports club, said yesterday that Red was delighted to make the offer to acquire one of the pre-eminent football clubs in the world.
"We are long-term sports investors and avid Manchester United fans," he said. "Our intention is to work with the current management, players and fans to ensure Manchester United continues to develop and achieve even greater success."
The Manchester United board said in a statement that during discussions with Red, it had sought a range of protections for the football club, its fans and any minority shareholders who wish to remain invested in the club.
"The board will review Red's position in respect of these issues when the full facts are available and will advise shareholders accordingly," it added. Full details will be set out in an offer document to be posted to all Man Utd shareholders.
It also emerged yesterday that David Gill, the Manchester United chief executive, and his finance director, Nic Humby, had also bought more shares. Mr Gill added 744 shares, taking his stake to about 0.4 per cent, while Mr Humby bought 221, which left him with a still negligible stake.
News that Mr Glazer had won control of the club sparked outrage from United fans on Thursday.
Oliver Houston, a spokesman for Shareholders United, the fans' pressure group, said it would try to form an alliance of shareholders controlling at least 25 per cent of the shares in order to block the Glazers from reaching the point at which they could take the club private. However, analysts said this was unlikely to succeed.
The board believes the bid, which is backed by up to £300 million of debt, is over leveraged and that Mr Glazer's plans to pay down the debt quickly are too aggressive.
Shares in Manchester United jumped after the announcement yesterday afternoon and finished the day 13 per cent higher at 299¼p. - (Financial Times Service)
