The biggest takeover deal in football history, which could result in the world's most powerful media magnate taking control of one of the world's richest football clubs, is expected to be investigated by the Office of Fair Trading amid fears of a breach of competition law.
Manchester United Football Club is expected to announce today that it has been taken over by the television company, BSkyB, which is controlled by Mr Rupert Murdoch.
The deal, thought to be worth £575 million, would give Mr Murdoch a firm grip on the marketing and broadcasting rights to England's Premiership football.
The news was greeted with deep shock and unease by fans and government ministers alike.
Britain's Sports Minister, Mr Tony Banks, said a deal to combine BSkyB's financial clout with a club of Manchester United's standing could merit an inquiry by antimonopoly watchdogs.
A statement from BSkyB said: "The board has noted the recent press speculation and confirms that it is in discussions which may or may not lead to an offer being made for Manchester United plc."
A bid offering up to 225p per share is thought to have been tabled by BSkyB. Shares in Manchester United, which was floated in 1991 for £47 million, closed at 159p on Friday.
One major beneficiary would be the club's chief executive, Mr Martin Edwards, who is understood to have been heading the negotiations.
He is said to be selling his 14 per cent stake in the club for more than £80 million.
Ownership of Manchester United would give Mr Murdoch considerable clout both within the Premier League or in selling Manchester United matches directly through one of the hundreds of digital channels he will control.
The Financial Times reported today that Enic, the leisure group with extensive interests in European football, is poised to make a rival bid for Manchester United.