The Grauniad report that senior sources at Credit Suisse First Boston, a bank who had been ‘seen as another potential Glazer backer because it had acted as his stockbroker during a share-buying spree last month’ have denied that they have any plans to fund his attempted takeover.
A fund manager is also quoted in the Guardian saying, “He knew he would lose JP Morgan if he voted against the three directors but he went ahead and did it anyway. One has to presume he has got a Plan B.”
It has also transpired that United’s board did decide to back the Glazer bid but changed their minds once they saw the leverage involved. The Financial Times reports,
‘The board of Manchester United told Malcolm Glazer's family it was prepared to recommend its 300p a share offer in a letter sent to the US sports tycoon before last week's breakdown in relations between the camps.
‘The letter was sent after David Gill, United's chief executive and an adviser, secretly met Mr Glazer's sons, Joel and Avi, in Tampa, Florida, on September 19. The 300p price was discussed at the meeting, held two weeks before United acknowledged having talks with the Glazers about an offer. United shares yesterday closed up 3¾p at 282p.
‘In the letter, Mr Gill said 300p was a “recommendable from a financial perspective” but said further “clarity” was needed. This included information about the financial structure of the proposal and the Glazers' plans for the future of the club. The board's enthusiasm cooled when it emerged that the Glazers were proposing a highly leveraged bid secured against future ticket income.
‘United ended talks with the family recently, saying the bid was "overly leveraged" and would leave the club with too much debt. It also declined to allow the Glazers a period of due diligence.’