Post by TennisHack on May 16, 2005 14:21:00 GMT -5
Glazer claims shares control of Man Utd
By Rhys Blakely, Times Online
May 16, 2005
www.timesonline.co.uk/article/0,,1-1614689,00.html
Malcolm Glazer tonight claimed the inevitable triumph in his battle for control of the world's richest football club, when the American billionaire's aides confirmed that he had purchased more than the 75 per cent stake in Manchester United that he needs to take the club private.
Tonight, a spokesman for Red Football Ltd, the Glazer family's investment vehicle, confirmed that it had now acquired 75.7 per cent, having purchased 2.35 million shares during the day in deals estimated to be worth more than £7 million.
Mr Glazer can now delist Manchester United from the London Stock Exchange and implement new plans for the club without having to seek approval from other shareholders. This includes transferring personal debt to the company - it is believed that Mr Glazer has borrowed at least £300 million to fund the share purchases, having valued the company at £790 million.
It is not yet clear if the Glazers intend to continue buying shares in the market until they reach the next key threshold of 90 per cent, above which he can force out any remaining minority shareholders.
"He’s got what he wants and it has happened with astonishing speed,"Hilary Cook, of Barclays Stockbrokers, said, adding an element of doubt on the next phase of Mr Glazer's quest. "I think he might not get the 90 per cent he needs because quite a lot of the fans won’t sell out. It could take some time."
Yet the outcome had for others seemed inevitable, and retaining shares in a company in which there will be no dividends paid and where no influence can be exercised over its running would seem futile, according to other analysts.
"The issue now is not whether he gets to 75 per cent but more a question about what the man’s vision is," Richard Hunter, an analysts with Hargreaves Lansdown stockbrokers, said.
"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."
The American has already pledged to delist United "not less than 20 days" after he reached the 75 per cent mark. Mr Glazer is expected to outline his plans in an official offer document to be released on Wednesday.
The 76-year-old billionaire, who owns the Tampa Bay Buccaneers, the American football team, has been mopping up shares in the former champions after buying a large stake from the Irish horseracing millionaires John Magnier and JP McManus for 300p a share on Thursday.
It was understood that Mr Glazer, who has been stalking the club for months, had instructed brokers to continue buying the shares at that price, although he had not made a formal offer for the rest.
Supporters fear that Mr Glazer has no sentimental attachment to the world's most profitable football club and intends to sweat the company's assets by raising ticket prices in order to repay the debts incurred in his takeover bid.
Fans staged muted protests yesterday when they watched their club win 2-1 at Southampton, but they still threatened to disrupt Saturday’s FA Cup final between United and Arsenal in Cardiff. Supporters' groups are asking fans to wear all black and carry black flags at the showpiece event, while also boycotting United's main sponsors, including Vodafone, Audi and Nike.
Many fans at the Southampton match sang "United not for sale" before they went inside the ground and many said they will not be renewing their season tickets for next year.
Supporters, who own an estimated 18 per cent of the club, have tried to secure financial backing from a Japanese bank to buy more shares in an effort to block Mr Glazer’s bid.
Meanwhile Sir Roy Gardner, United chairman and chief executive of energy group Centrica, has vowed to sever his ties with JPMorgan Chase following the US bank’s role in financing Glazer’s takeover, according to reports.
JPMorgan and Cazenove recently formed a joint British venture, although the banks continued to work on separate sides of Mr Glazer’s takeover of United. Cazenove advised the football club and JPMorgan financed the US tycoon’s bid.
"As far as he’s concerned [JP Morgan] made a clear understanding that it would never work on a hostile bid against a Cazenove client," the Financial Times quoted a source involved in the talks between United and Glazer.
"But as far as Sir Roy’s concerned, they did."
The newspaper said it was unlikely that Sir Roy’s anger would affect JPMorgan’s relationship with Centrica. The bank is the utility group’s stockbroker and Roger Carr, Centrica’s chairman, is likely to have a significant influence on its choice of future advisers.
But the fallout could damage JPMorgan Cazenove, which was created in February and has reassured its blue chip British clients that it will avoid conflicts of interest with its new parent.
By Rhys Blakely, Times Online
May 16, 2005
www.timesonline.co.uk/article/0,,1-1614689,00.html
Malcolm Glazer tonight claimed the inevitable triumph in his battle for control of the world's richest football club, when the American billionaire's aides confirmed that he had purchased more than the 75 per cent stake in Manchester United that he needs to take the club private.
Tonight, a spokesman for Red Football Ltd, the Glazer family's investment vehicle, confirmed that it had now acquired 75.7 per cent, having purchased 2.35 million shares during the day in deals estimated to be worth more than £7 million.
Mr Glazer can now delist Manchester United from the London Stock Exchange and implement new plans for the club without having to seek approval from other shareholders. This includes transferring personal debt to the company - it is believed that Mr Glazer has borrowed at least £300 million to fund the share purchases, having valued the company at £790 million.
It is not yet clear if the Glazers intend to continue buying shares in the market until they reach the next key threshold of 90 per cent, above which he can force out any remaining minority shareholders.
"He’s got what he wants and it has happened with astonishing speed,"Hilary Cook, of Barclays Stockbrokers, said, adding an element of doubt on the next phase of Mr Glazer's quest. "I think he might not get the 90 per cent he needs because quite a lot of the fans won’t sell out. It could take some time."
Yet the outcome had for others seemed inevitable, and retaining shares in a company in which there will be no dividends paid and where no influence can be exercised over its running would seem futile, according to other analysts.
"The issue now is not whether he gets to 75 per cent but more a question about what the man’s vision is," Richard Hunter, an analysts with Hargreaves Lansdown stockbrokers, said.
"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."
The American has already pledged to delist United "not less than 20 days" after he reached the 75 per cent mark. Mr Glazer is expected to outline his plans in an official offer document to be released on Wednesday.
The 76-year-old billionaire, who owns the Tampa Bay Buccaneers, the American football team, has been mopping up shares in the former champions after buying a large stake from the Irish horseracing millionaires John Magnier and JP McManus for 300p a share on Thursday.
It was understood that Mr Glazer, who has been stalking the club for months, had instructed brokers to continue buying the shares at that price, although he had not made a formal offer for the rest.
Supporters fear that Mr Glazer has no sentimental attachment to the world's most profitable football club and intends to sweat the company's assets by raising ticket prices in order to repay the debts incurred in his takeover bid.
Fans staged muted protests yesterday when they watched their club win 2-1 at Southampton, but they still threatened to disrupt Saturday’s FA Cup final between United and Arsenal in Cardiff. Supporters' groups are asking fans to wear all black and carry black flags at the showpiece event, while also boycotting United's main sponsors, including Vodafone, Audi and Nike.
Many fans at the Southampton match sang "United not for sale" before they went inside the ground and many said they will not be renewing their season tickets for next year.
Supporters, who own an estimated 18 per cent of the club, have tried to secure financial backing from a Japanese bank to buy more shares in an effort to block Mr Glazer’s bid.
Meanwhile Sir Roy Gardner, United chairman and chief executive of energy group Centrica, has vowed to sever his ties with JPMorgan Chase following the US bank’s role in financing Glazer’s takeover, according to reports.
JPMorgan and Cazenove recently formed a joint British venture, although the banks continued to work on separate sides of Mr Glazer’s takeover of United. Cazenove advised the football club and JPMorgan financed the US tycoon’s bid.
"As far as he’s concerned [JP Morgan] made a clear understanding that it would never work on a hostile bid against a Cazenove client," the Financial Times quoted a source involved in the talks between United and Glazer.
"But as far as Sir Roy’s concerned, they did."
The newspaper said it was unlikely that Sir Roy’s anger would affect JPMorgan’s relationship with Centrica. The bank is the utility group’s stockbroker and Roger Carr, Centrica’s chairman, is likely to have a significant influence on its choice of future advisers.
But the fallout could damage JPMorgan Cazenove, which was created in February and has reassured its blue chip British clients that it will avoid conflicts of interest with its new parent.
