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Glazer would consider hostile Man Utd bid-sources (go back to the homepage) AMSTERDAM (Reuters) - U.S. financier Malcolm Glazer would consider making a hostile bid for Britain's Manchester United if talks over a friendly 800 million pound approach fall through, sources close to the process said on Thursday. "If the bid is rejected, he could take the offer straight to shareholders," one of the sources said, although he stressed Glazer's aim was to get a recommendation from United's board. Glazer has told United's board he is prepared to pay 300 pence in cash to buy the 15-times British soccer champion, but the two sides are locked in talks and are yet to agree a deal, the source said. The U.S. tycoon's advisers are set to meet with United's camp on Thursday as part of ongoing negotiations, the sources said. Glazer has had two previous bid attempts rebuffed. "There are discussions today, and there will be meetings this week and probably more next week," another said. "The indicative proposal remains on the table, and we are in discussions about certain changes," one of the sources said. The key sticking point is the capital structure of the bid and the amount of debt Glazer plans to load on to the company's books to fund the acquisition, the sources said. Under the plan, Glazer would transfer about 300 million pounds of debt to debt-free United and finance the remaining 500 million pounds through his own money and bank loans. The board has said it will not approve a takeover that leaves United heavily indebted, although it acknowledges that 300p a share would be a fair price. United's shares closed at 275p on the London Stock Exchange on Thursday. Glazer, who owns the Tampa Bay Buccaneers American football team, wants the board to recommend the bid and put it to its shareholders to decide. A board recommendation is key because it could make United's two biggest shareholders vote in favour of a deal, one of the sources said. Irish racehorse magnates John Magnier and J.P. McManus own 28.8 percent of the club, and without their backing Glazer's takeover cannot proceed. The board's agreement might also help to win around irate fans, who oppose Glazer's approaches because they fear he will hike ticket prices and cut investment to pay back his debt. The BBC reported that Glazer's revised proposals include a commitment to provide a fund of about 20 million pounds to buy new players. It also supports the club's plans to expand its stadium, the BBC said on its Web site (http://www.bbc.co.uk/news). |