|
|
Manchester United Fans Enlist Nomura to Block Glazer (go back to the homepage) May 1 (Bloomberg) -- Fans of Manchester United, the world's richest soccer club by revenue, have enlisted investment bank Nomura Holdings Inc. in an effort to block an 800 million-pound ($1.53 billion) takeover bid by U.S. billionaire Malcolm Glazer. Shareholders United, a fans group, aims to use Nomura to help it build up a 25 percent stake and block the 76-year-old American. Nomura, Japan's largest securities firm, would lend as much as 100 million pounds ($191 million), with fans putting up an equal amount in cash or shares, and the stake would be held in an investment trust, Shareholders United vice-chairman Sean Bones said. ``This is a chance for Manchester United fans to put their money where there are hearts are,'' Bones said in an interview. ``With a supporter base of 75 million and Manchester United playing such an important part of our lives, it's up to us to protect the club.'' United, England's most successful soccer team of the past decade, has won eight Premiership titles in 13 seasons and was the last English club, in 1999, to win Europe's elite Champions League. Glazer, owner of the Tampa Bay Buccaneers, began building his 28.8 percent stake two years ago, and after United rejected his proposed bid U.K. financial authorities last week gave him a May 17 deadline to make an offer or withdraw. Manchester United Plc called his proposed offer of 300 pence a share a ``fair one,'' although it added that the assumptions in his business plan were ``aggressive.'' Glazer's takeover would load too much debt on the club, the team said. Debt-free United last reported a loss in 1990. Poised to Bid? Even without the board's support, Glazer is poised to make a formal 800 million-pound, or 300 pence a share, bid for United as early as this week, the Sunday Telegraph reported today, without saying where it got the information. That's 15 percent higher than the closing price on April 29. Jeff Kamis, a spokesman for Glazer in Florida, said the billionaire was unavailable for comment. The fate of the club may rest with Irish racehorse millionaires John Magnier and JP McManus, who hold a 29 percent stake. Shareholders United owns about 2 percent of United and has about 25,000 people, Bones said. Individual shareholders account for about 18 percent of the club, the Sunday Times said. A 25 percent stake would enable fans to block Glazer from achieving a 75.1 percent vote needed to transfer debt in his takeover plan to United, the paper added. Nomura spokeswoman Jessica Shepherd-Smith, confirming the link-up with Shareholders United, said in an interview that the company has been in talks with the fans group for several months. Opposition Shareholders United has long lobbied against Glazer, regarding him as a predator who would put the club and its shareholders' interests at risk. The group led a protest of 1,000 supporters before Manchester United's game against A.C. Milan in the Champions League in February. Bones, who said his group plans to approach about 40 wealthy supporters of the team, said the plan had a ``good chance'' of succeeding. Under Shareholders United's plan, current shareholders would be invited to exchange United stock for units in the investment trust, and new investors would be able to subscribe units for cash. ``We would hope to attract significant new funding from `red knights' who have expressed an interest in participating,'' the fans group said in a statement. Dividends and other income would service the debt, and it would be possible for investors to trade trust units on a secondary market. Since buying the Buccaneers in 1995, Glazer helped the NFL team to the 2003 Super Bowl title and, according to Forbes magazine, quadrupled its value to $779 million. Ranked by Forbes as the 244th richest American in 2003 with $1 billion, Glazer lives in Palm Beach, Florida. Won Today Manchester United, 128 years old, remained the world's biggest club by revenue for the eighth straight year in a report by accountancy firm Deloitte & Touche LLP published Feb. 17. Sales fell in fiscal 2004 for the first time in eight years, to 169.1 million pounds, while profit dropped 35 percent to 19.4 million pounds. On March 22, United said first-half profit slumped 52 percent as defeats on the field eroded income from broadcasting. The club failed to get to the quarterfinals of Europe's elite Champions League and lies third in the Premiership with 73 points from 35 games after today's 4-0 win at Charlton. It is 15 points behind Chelsea, which yesterday secured its first league title in 50 years with a 2-0 win at Bolton. United is advised by Merrill Lynch & Co. and Cazenove Group Plc. JPMorgan Chase & Co. is advising Glazer. |