US financier Malcolm Glazer said yesterday evening that he had raised his stake in Manchester United to over 75%, finally seizing full control of the British soccer giants he has battled to acquire for more than two years.
Glazer said in a regulatory filing that he had raised his holding in the world's most famous soccer brand to 75.7%, as part of a £790m sterling takeover of the entire club. At that level Glazer can now delist Manchester United Plc from the London Stock Exchange and implement new plans for the club without having to seek approval from other shareholders.
It is not yet clear if Glazer intends to continue buying shares in the market until he reaches the next key threshold of 90%, above which he can force out any remaining minority shareholders. Another source said there was no urgency to continue buying above the 75% mark but that it was something Glazer might do over time.
After a bitter takeover battle, the US tycoon took control of the 15-times British soccer champions last Thursday by buying a 28.7% stake from the club's biggest shareholder, Cubic Expression, an investment vehicle for Irish racehorse magnates John Magnier and JP McManus.
That elevated his stake to 56.9% and, under UK takeover rules, kicked off a mandatory offer for the remaining shares. Glazer's advisers moved quickly, snapping up more shares by striking deals with other investors. He ended the week with just under 75% of the 127-year-old club.
Glazer's next step will be to send his offer document to shareholders giving detailed information about the share offer. That will put in place a timetable from the UK's Takeover Panel giving Glazer a 60-day period in which to complete his acquisition.
The offer document is expected to be posted sometime this week, another source close to the process said.
But furious fans have vowed to fight on, saying Glazer has no knowledge of football and plans to cream the profits off the club to pay back the debts used to buy it. In particular, they object to the £265m of debt Glazer plans to pile onto United's balance sheet.
A hardline group of fans defaced the merchandise store at United's Old Trafford football stadium in Manchester yesterday. But the anti-Glazer graffiti was soon painted over, and there were no reports of other disturbances or protests.
Meanwhile, the Shareholders United fan Web site still urges United fans to buy up shares in a bid to stop Glazer. They are also pushing fans to boycott United merchandise and its sponsors' products.
A source close to the process said some fans were trying to buy shares at just over Glazer's 300 pence a share offer price. But with Glazer now in control of three quarters of the club, analysts have said there is nothing they can do.
