waquas_uk
16th May 2005, 09:56
American businessman Malcolm Glazer has gained the 75% stake he needs to turn Manchester United into a private company, according to Reuters sources.
If he wants he will now be able to take the famous football club off the Stock Exchange and transfer debts onto its books.
No official confirmation has come from the Glazer camp, which needed around 500,000 shares at the start of trading on Monday.
Sky News Business Editor Michael Wilson said some 2 million shares had been traded this morning and it appeared the 75% threshold was "done and dusted".
He said it is likely Mr Glazer will go on to land a 90% holding "by the end of the week".
Some £265m of the money he has borrowed to fund his takeover is set to be recorded as debt - costing well over £100,000 a day to service.
An effigy of Malcolm Glazer outside Old Trafford
It is forecast ticket prices will be put up and the billionaire's team will eventually try to re-negotiate TV rights.
United fans - angry at the takeover - have threatened to stage protests at Saturday's FA Cup final.
Richard Hunter, of Hargreaves Lansdown stockbrokers, said: "The issue now is not whether he gets to 75% but more a question about what the man's vision is.
"There are questions around repaying the debt and making Manchester United a much bigger brand than it is now. This is a shrewd businessman who has probably got something up his sleeve."
Last week Mr Glazer's company Red Football bought out the club's biggest investors - JP McManus and John Magnier.
The Irish duo had owned a 28.7% stake. Mr Glazer is believed to have paid them 300p a share. The millionaire later secured the shares of Scottish mining entrepreneur Harry Dobson
If he wants he will now be able to take the famous football club off the Stock Exchange and transfer debts onto its books.
No official confirmation has come from the Glazer camp, which needed around 500,000 shares at the start of trading on Monday.
Sky News Business Editor Michael Wilson said some 2 million shares had been traded this morning and it appeared the 75% threshold was "done and dusted".
He said it is likely Mr Glazer will go on to land a 90% holding "by the end of the week".
Some £265m of the money he has borrowed to fund his takeover is set to be recorded as debt - costing well over £100,000 a day to service.
An effigy of Malcolm Glazer outside Old Trafford
It is forecast ticket prices will be put up and the billionaire's team will eventually try to re-negotiate TV rights.
United fans - angry at the takeover - have threatened to stage protests at Saturday's FA Cup final.
Richard Hunter, of Hargreaves Lansdown stockbrokers, said: "The issue now is not whether he gets to 75% but more a question about what the man's vision is.
"There are questions around repaying the debt and making Manchester United a much bigger brand than it is now. This is a shrewd businessman who has probably got something up his sleeve."
Last week Mr Glazer's company Red Football bought out the club's biggest investors - JP McManus and John Magnier.
The Irish duo had owned a 28.7% stake. Mr Glazer is believed to have paid them 300p a share. The millionaire later secured the shares of Scottish mining entrepreneur Harry Dobson