Two Irish racehorse magnates seized nearly a quarter of Manchester United yesterday by buying BSkyB’s stake in the Premiership club.<\/p>\n
But millionaires JP McManus and John Magnier are not planning a takeover, sources close to the deal said.<\/p>\n
But as the club’s share price rose on the news, Stan Lock of stockbroker Brewin Dolphin said: ‘They are definitely in play now’.<\/p>\n
Manchester United said that Rupert Murdoch’s BSkyB sold its ten per cent share of one of the world’s richest soccer clubs to Mr McManus and Mr Magnier, taking their stake to 23.15 per cent.<\/p>\n
The pounds 62 million deal fuelled talk that United could fall prey to a bid, as did London rivals Chelsea, and shares in the club raced to a three-year high, closing at 274.75p.<\/p>\n
Mr McManus and Mr Magnier’s shareholding is worth pounds 150 million -dwarfing the pounds 60 million that Russian billionaire Roman Abramovich spent buying Chelsea.<\/p>\n
The Irishmen’s investment vehicle, Cubic Expression, declined comment. Both men have been close associates of United manager Sir Alex Ferguson, but newspapers have recently reported tensions between Mr Magnier and Sir Alex over their jointly owned champion racehorse Rock of Gibraltar.<\/p>\n
BSkyB offloaded its 26 million shares in Manchester United for 239p each. The deal ends the broadcaster’s involvement with the club that it was blocked by regulators from buying for 240p a share in 1999.<\/p>\n
Takeover rumours have intensified around Manchester United since Mr Abramovich bought Chelsea and spent more than pounds 100 million on star players.<\/p>\n
Investors including US sports magnate Malcolm Glazer, owner of Super Bowl champions the Tampa Bay Buccaneers, and John de Mol, the billionaire behind reality TV show Big Brother, have been gradually building their stakes in United, although the club has insisted there have been no bid talks. ‘The Russians are still in the background, the American is still picking them up, and now it looks like the Irish picking them up. It could be a free-for-all,’ Mr Lock said. Other major Manchester United shareholders include Scottish mining millionaire Harry Dobson with about 6.5 per cent, Mr Glazer, 5.9 per cent, hedge fund Lansdowne Partners, 5.2 per cent and Mr de Mol with3.5 per cent. Manchester United shares have raced ahead since hitting a low of 85p last November. Analysts said BSkyB had timed its exit well, and added the move was no surprise given it was blocked from bidding for the club.<\/p>\n
‘They’re out clean at a good price. There was no use in them holding them apart from as an investment, and not long ago the shares were at 90p, so to get out at239p is not bad,’ said Mr Lock. City analysts believe BSkyB’s move paves the way for a full takeover bid for one of the highest profile football clubs in the world.<\/p>\n
Henk Potts, at Barclays Private Clients, said: ‘The market is pretty optimistic that a bid will come through. Normally when someone dumps ten per cent of a company into the market you would expect shares to slump.’<\/p>\n
However, the Manchester United Supporters Trust expressed unease at Cubic Expression’s motives.<\/p>\n
Spokesman Oliver Houston said: ‘This would appear to be a defensive purchase. These guys are gamblers and currency speculators, so it is unlikely they are looking to make a slow and steady return on their investment over a 25-year period.’<\/p>\n
Analysts believe there are now three likely scenarios behind the Cubic Expression stakebuilding.<\/p>\n
The first is that Mr McManus and Mr Magnier think Manchester United offers a good underlying investment opportunity.<\/p>\n
But some observers reject this, arguing the club does not provide a decent dividend or a clear path to growth for their money.<\/p>\n
The second possible reason is the Irish pair are building their stake to block other parties from trying to take over the club, in particular American football entrepreneur Malcolm Glazer.<\/p>\n
A third option is that Mr McManus and Mr Magnier are buying shares in preparation for their own takeover approach.<\/p>\n
Mr Potts said: ‘It makes no sense for them to have such a large holding in Manchester United and not be in overall control.’<\/p>\n","protected":false},"excerpt":{"rendered":"
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