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Glazer increases Manchester United stake
(Agencies)
Updated: 2005-05-14 15:53
Tampa Bay Buccaneers owner Malcolm Glazer is fractions of a percentage point
short of taking complete control of Manchester United.
Glazer's company, Red Football, said its stake in the world's richest soccer
team increased to 74.81 percent by the close of trading Friday in London. Glazer
needs 75 percent for complete control.
US tycoon Malcolm Glazer was on the verge of
completing a takeover of Manchester United after announcing he now holds
74.8 percent of the shares in the English Premiership side.
[AFP] | The company also told the London Stock
Exchange it would borrow $490 million to fund the $1.47 billion takeover.
Remaining shareholders were expected to receive Glazer's formal buyout offer by
mail next week. Glazer is offering $5.55 a share.
Glazer's son, Joel, said in a statement the family was "delighted to make
this offer to acquire one of the pre-eminent football clubs in the world."
"We are long-term sports investors and avid Manchester United fans," said
Joel Glazer, who is expected to run the team with his brothers Edward and Bryan.
"Our intention is to work with the current management, players and fans to
ensure Manchester United continues to develop and achieve even greater success."
Supporters protest outside Manchester United's
Old Trafford stadium in Manchester, north west England May 12, 2005. Fans'
groups called a demonstration at the Old Trafford ground, saying Glazer
had no knowledge of the football side of the club and was only interested
in its brand and revenue. [Reuters] | The Glazer
family said it would provide $503 million of its own money for the takeover.
Another $509 million will be generated by issuing preferred securities to large
investors and friends of Glazer.
The rest is debt, secured by the club's assets.
Glazer's ownership reached 56.9 percent on Thursday after he bought out joint
majority shareholders J.P. McManus and John Magnier, Irish racehorse owners. He
previously owned 28.1 percent of the club.
The Manchester United board, which two weeks ago said it wouldn't recommend
Glazer's "aggressive" takeover to investors, said Friday it would study the
latest bid before taking any position.
"During the recent discussions with Red, the board sought a range of
protections for the football club, its fans and any minority shareholders who
wish to remain invested in Manchester United," the board said in a statement.
A Manchester United fan protests outside Old
Trafford. US tycoon Malcolm Glazer sought to head off mounting fans' anger
about his imminent United takeover by declaring himself an 'avid' fan of
the celebrated English Premiership
side.[AFP] | "The board will review Red's position
in respect of these issues when the full facts are available and will advise
shareholders accordingly."
The takeover brings another foreigner into English soccer.
Russian billionaire Roman Abramovich owns league champion Chelsea, England's
national team is coached by Swede Sven-Goran Eriksson, and league runner-up
Arsenal is run by Frenchman Arsene Wenger.
On Thursday, thousands of Manchester United fans protested outside Old
Trafford. On Friday, few seemed convinced that the Glazers are fans of the team.
"That statement is an insult to human intelligence," said Mark Longden,
spokesman for the Independent Manchester United Supporters' Association. "Does
this guy really think anyone will actually believe him?"
Some fan groups also have suggested the possibility of forming a breakaway
club.
"Glazer is viewed as a parasite by fans, and you have to get rid of
parasites," said Sean Bones, vice chairman of Shareholders United, which
represents small investors.
"What we have to do is affect revenue streams. We need to stop people buying
merchandise or anything related to the sponsorship of the club."
Manchester United has won eight of 13 Premier League titles since the league
began in 1992, but only once in the last four seasons.
With a game left, United is in third place — 20 points behind Chelsea and
nine Arsenal. The club's only chance for a trophy is the May 21 FA Cup final,
where Arsenal is the favorite.
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