TAKEOVER STILL LIKELY
‘Manchester United yesterday sought to put an end to the bid
speculation surrounding the club but City traders were not
convinced and are continuing to bet on a takeover.
‘In a statement to the London Stock Exchange, the American
sports tycoon Malcolm Glazer, who owns more than 16% of the
club, said that he had "no current intention to make an
offer for Manchester United".
‘The statement was enough to end United's financial status
as being in an "offer period" - which limits the actions of
a target company - and would normally also safeguard the
club against any move by Glazer for six months.
‘But the billionaire owner of American Football's Tampa Bay
Buccaneers has negotiated a special deal with the Takeover
Panel - which monitors City bid action to ensure fair play -
that will exempt him from that rule, allowing him to change
his mind at any time. He has also retained the right to buy
and sell United shares.
‘Vinay Bedi, an investment manager and analyst with brokers
Wise Speke, said: "On the face of it this statement doesn't
change anything. In fact, the exemption is just baffling".
‘The club is debt-free and has £23m in the bank. Those
attractions, plus the biggest brand name in world sport,
means the club is an attractive takeover proposition. "It is
a cash cow", said one City analyst, "It just spews out
money".’
speculation surrounding the club but City traders were not
convinced and are continuing to bet on a takeover.
‘In a statement to the London Stock Exchange, the American
sports tycoon Malcolm Glazer, who owns more than 16% of the
club, said that he had "no current intention to make an
offer for Manchester United".
‘The statement was enough to end United's financial status
as being in an "offer period" - which limits the actions of
a target company - and would normally also safeguard the
club against any move by Glazer for six months.
‘But the billionaire owner of American Football's Tampa Bay
Buccaneers has negotiated a special deal with the Takeover
Panel - which monitors City bid action to ensure fair play -
that will exempt him from that rule, allowing him to change
his mind at any time. He has also retained the right to buy
and sell United shares.
‘Vinay Bedi, an investment manager and analyst with brokers
Wise Speke, said: "On the face of it this statement doesn't
change anything. In fact, the exemption is just baffling".
‘The club is debt-free and has £23m in the bank. Those
attractions, plus the biggest brand name in world sport,
means the club is an attractive takeover proposition. "It is
a cash cow", said one City analyst, "It just spews out
money".’