Man U bid to go to investors

The Manchester United plc board seems poised to put US tycoon Malcolm Glazer's €1 billion offer to shareholders, but is not going to recommend it to them.

However, Mr Glazer has yet to make contact with the biggest shareholders, Irish bloodstock and racing magnates John Magnier and JP McManus, whose support is vital if he is to succeed in buying the world's richest soccer club.

Even if he does not win the board's support, his 28.1 per cent stake allied to the 28.9 per cent owned by the Irishmen's vehicle, Cubic Expression, would bring him close to his target of 75 per cent control of the business.

Mr Glazer was widely expected to contact Cubic this week but has not yet done so.

Mr Glazer's representatives and the board have been locked in talks over his revised offer for the club for almost two weeks.

Reports yesterday indicated that the board would, as it said it would two months ago, allow the offer to go to shareholders but not recommend it to them.

The board will issue a statement outlining this position, but Mr Glazer's representatives are wrangling over the way in which their offer is being represented.

The directors are concerned at the level of debt that the Glazer takeover would bring to the club. His €4.35-a-share offer for the business, valuing it at €1.1 billion, would leave it with about €430 million in debt on its books.

This would be repaid from its cashflow, limiting its scope to invest in other areas of the business, including buying new playing talent. This is also a key issue for supporters, many of whom hold shares in the club.