Q&A: Malcolm Glazer and Man Utd

The battle for control of Manchester United has taken another turn after the club confirmed it had received a fresh takeover approach from US business tycoon Malcolm Glazer.

No formal offer has been made yet, but Manchester United have confirmed they have received a "detailed proposal" from the US entrepreneur which could lead to a bid. Reports have put the offer at 300p per share, which would value Manchester United at about £800m ($1.5bn). The approach by the 76-year-old owner of the Tampa Bay Buccaneers American football team is reportedly being led by his two sons, Avi and Joel. A previous approach to the United board by Mr Glazer in October last year was turned down. However, the BBC has learnt that the club is unlikely to reject the latest plan out of hand.

Mr Glazer's previous offer involved borrowing large amounts of money to finance any takeover. That would have left the club with debt levels which were deemed "not... in the best interests of the company" by Manchester United's board when they rejected his approach last year. However, Mr Glazer's latest offer is reported to have cut the amount of borrowing needed by £200m.

While United's board may be casting a serious eye over Mr Glazer's latest proposals, supporters remain fiercely opposed to any deal.

Supporters' group Shareholders United - which has proved adept in rallying opposition to Mr Glazer's campaign - said it would fight any move. "Manchester United are a debt-free company. We don't want to fall into debt and we don't need to fall into debt," Shareholders United's Sean Bones told the BBC. United's players also appear unhappy at the prospect of a takeover. "A lot of people want the club's interest to be with people who have grown up with the club and got its interests at heart," Rio Ferdinand told BBC Radio Five Live. "No-one knows what this guy will be bringing to the table."

The key to any successful bid will be attracting the support of United's largest shareholders, the Irish horse racing tycoons John Magnier and JP McManus. Through their Cubic Expression vehicle they own 28.9% of the club. Mr Glazer owns 28.1%. Joe McLean, a football specialist at accountancy firm Grant Thornton, said the support of Mr Magnier and Mr McManus was "utterly crucial". "Mr Glazer's bid will not proceed without their support and they have previously indicated that they are holding their stake as an investment. "If that's the case, the shares will therefore need a price attachment of about 300 pence, maybe 305. "If that's the case then Mr Glazer might well secure their support - if he does, this bid could well go ahead."

Indeed it is. Malcolm Glazer was little-known in the UK until he started to build up his stake in Manchester United in late 2003. In February 2004 he said he was "considering" whether to bid for the club. No bid emerged, but Mr Glazer continued to increase his holding in the club. In October 2004, Manchester United said they had received a "preliminary approach", which turned out to have come from Mr Glazer. However, the board rejected the move because of the amount of debt it would involve. At the club's annual general meeting in November, Mr Glazer took revenge by using his hefty stake in the club to oust three directors from the board. Legal adviser Maurice Watkins, commercial director Andy Anson and non-executive director Philip Yea were voted out, against the wishes of chief executive David Gill. But the move led to bankers JP Morgan and public relations firm Brunswick withdrawing from the Glazer bid team.
