Racing magnates Mr JP McManus and Mr John Magnier have bought BSkyB's stake in Manchester United to bring their holding in the club to more than 23 per cent.
In a statement released to the London Stock Exchange by the club, it was cofirmed that Cubic Expression, Mr McManus and Mr Magnier's investment vehicle, had bought the shares.
"Manchester United is aware that British Sky Broadcasting Group plc released an RNS [regulatory news service] announcement earlier this morning advising that they had sold their entire shareholding in Manchester United amounting to 25,950,827 ordinary sharesrepresenting approximately 10.0 per cent of the issued share capital of Manchester United," the statement said.
"Manchester United has now been advised that the Cubic Expression Company Ltd has, as at October 7th 2003, a holding of 60,144,730 ordinary shares representing approximately 23.15 per cent of the issued share capital of Manchester United," it concluded.
Mr Rupert Murdoch's BSkyB sold its 10 per cent stake this morning for £62 million sterling ($104 million), feeding talk United could fall prey to a bid, as did rival club Chelsea.
Both men have been close associates of United manager Sir Alex Ferguson, but newspapers have recently reported tensions between Mr Magnier and Mr Ferguson over their jointly owned champion racehorse Rock of Gibraltar.
Manchester United shares jumped 8 per cent to 254p,their highest level since December 2000, valuing the club ataround £600 million.
A source close to the transaction said there were no plans for a takeover bid.
But takeover rumours have intensified around Manchester United since Russian billionaire Mr Roman Abramovich bought up London rivals Chelsea and began pouring more than £100 million sterling into buying star players.
Other investors - including US sports magnate Mr Malcolm Glazer,owner of Super Bowl champions the Tampa Bay Buccaneers, and the billionaire behind reality TV show Big Brother, Mr John de Mol - have been gradually building their stakes in United, although the club has insisted there have been no bid talks.
Scottish mining millionaire Mr Harry Dobson has around a 6.5 per cent share in the club, Mr Glazer has 5.9 per cent, hedge fund Lansdowne Partners has 5.2 per cent,and Mr de Mol has 3.5 per cent.
Manchester United shares have raced ahead since hitting alow of 85 pence last November. Analysts said BSkyB had timed its exit well and added the move was no surprise given it wasblocked from bidding for the club.
additional reporting: Reuters