McManus and Magnier raise stake in Man United

Shares in Manchester United surged by almost 6 per cent yesterday as it emerged that Irish multi-millionaires Mr J.P. McManus and Mr John Magnier had raised their stake in the club from 11.4 per cent to 23.15 per cent.

The development led weight to the takeover rumours that have been surrounding Manchester United for months, as various individual shareholders have been linked with possible bids for the club. The speculation has seen Manchester United shares climb by almost 200 per cent since last November.

Close to 37 million shares or 14 per cent of the club changed hands after the deal was announced on the London Stock Exchange.

At this stage, it is thought unlikely that Mr McManus and Mr Magnier will make a bid for the remainder of the company, although they would be obliged to do so if their holding rose above 29.9 per cent.

The latest move came as their Virgin Islands-registered investment entity Cubic Expression Company picked up BSkyB's 9.9 per cent stake in Manchester United for £62 million, or £2.39 per share.

The TV company attempted to buy the club in 1999 for £2.40 per share but was blocked by regulators.

Manchester United shares closed at £2.47 (€3.49), thus valuing the Irishmen's stake at close to £150 million and giving Manchester United a market capitalisation of some £640 million. This compares to the £60 million paid by Russian billionaire Mr Roman Abramovich earlier this year to buy Chelsea.

Mr McManus and Mr Magnier had already been the club's largest shareholders before the latest transaction, with mining magnate Mr Harry Dobson the next most substantial holder with 6.5 per cent.

US sports magnate Mr Malcolm Glazer, who recently raised his stake from 3.17 per cent to 5.9 per cent, has the next largest holding.

Mr Glazer, who could not be contacted last night, is seen by many as the most likely of the prominent shareholders to make a full bid for Manchester United.

Mr McManus and Mr Magnier have consistently depicted themselves as "value investors" in the club and this view was yesterday underlined by Manchester United company secretary, Mr David Beswitherick.

Mr Beswitherick said the club had not had contact with the multi-millionaires since last week when they received a private briefing on Manchester United's annual results.

Neither Mr McManus nor Mr Magnier have made any attempt in the past to interfere with the day-to-day running of the club, according to Mr Beswitherick.

Manchester United, the richest football club in the world, made a pre-tax profit of £39.3 million last year, up 22 per cent on 2002.